THE WHO’S BUYING SERIES
BY THE NEW STRATEGIST EDITORS
W 2 n d 5th E DEDITION ITION
New Strategist Publications, Inc...
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THE WHO’S BUYING SERIES
BY THE NEW STRATEGIST EDITORS
W 2 n d 5th E DEDITION ITION
New Strategist Publications, Inc. P.O. Box 242, Ithaca, New York 14851 800/848-0842; 607/273-0913 www.newstrategist.com
Copyright 2008. NEW STRATEGIST PUBLICATIONS, INC.
All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, microfilming, recording, or otherwise without written permission from the Publisher.
ISBN 1-978-935114-19-2 ISBN 1-935114-19-0 Printed in the United States of America
Contents About the Data in Who’s Buying Transportation ..............................................................................................................5 1.
Percent Reporting Expenditure and Amount Spent, Average Quarter, 2006 .............................9
Household Spending Trends, 2000 to 2006 ................................................................................................................ 11 2.
Household Spending Trends, 2000 to 2006 ....................................................................................12
Household Spending on Transportation, 2006 .............................................................................................................15 3.
Transportation Spending, 2000 to 2006 ..........................................................................................17
Household Spending on Transportation by Demographic Characteristic, 2006 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31.
Transportation: Average Spending by Age, 2006 ..........................................................................18 Transportation: Indexed Spending by Age, 2006 ..........................................................................20 Transportation: Total Spending by Age, 2006 ................................................................................22 Transportation: Market Shares by Age, 2006 .................................................................................24 Transportation: Average Spending by Income, 2006 ....................................................................26 Transportation: Indexed Spending by Income, 2006 ....................................................................28 Transportation: Total Spending by Income, 2006 ..........................................................................30 Transportation: Market Shares by Income, 2006 ...........................................................................32 Transportation: Average Spending by High-Income Consumer Units, 2006 ...........................34 Transportation: Indexed Spending by High-Income Consumer Units, 2006 ...........................36 Transportation: Total Spending by High-Income Consumer Units, 2006 .................................38 Transportation: Market Shares by High-Income Consumer Units, 2006 ..................................40 Transportation: Average Spending by Household Type, 2006 ....................................................42 Transportation: Indexed Spending by Household Type, 2006 ....................................................44 Transportation: Total Spending by Household Type, 2006 .........................................................46 Transportation: Market Shares by Household Type, 2006 ...........................................................48 Transportation: Average Spending by Race and Hispanic Origin, 2006 ...................................50 Transportation: Indexed Spending by Race and Hispanic Origin, 2006 ...................................52 Transportation: Total Spending by Race and Hispanic Origin, 2006 .........................................54 Transportation: Market Shares by Race and Hispanic Origin, 2006 ..........................................56 Transportation: Average Spending by Region, 2006 ....................................................................58 Transportation: Indexed Spending by Region, 2006 ....................................................................60 Transportation: Total Spending by Region, 2006 ..........................................................................62 Transportation: Market Shares by Region, 2006 ...........................................................................64 Transportation: Average Spending by Education, 2006 ...............................................................66 Transportation: Indexed Spending by Education, 2006 ...............................................................68 Transportation: Total Spending by Education, 2006 .....................................................................70 Transportation: Market Shares by Education, 2006 ......................................................................72
WHO’S BUYING TRANSPORTATION 3
Household Spending on Transportation by Product Category, 2006 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56.
Airline Fares ........................................................................................................................................74 Automobile Service Clubs .................................................................................................................76 Bus Fares, Intercity .............................................................................................................................78 Car Lease Payments ...........................................................................................................................80 Cars, New ...........................................................................................................................................82 Cars, Used ...........................................................................................................................................84 Gasoline and Motor Oil (Including on Trips) ................................................................................86 Global Positioning System Services ................................................................................................88 Local Transportation on Trips (Including Taxis) ...........................................................................90 Mass Transit Fares, Intracity ............................................................................................................92 Motorcycles, New and Used ............................................................................................................94 Oil Change, Lube, and Oil Filters ....................................................................................................96 Parking Fees (Excluding at Residence) ...........................................................................................98 Ship Fares ..........................................................................................................................................100 Taxi Fares and Limousine Service in Home Town.......................................................................102 Tires (Purchased, Replaced, Installed) ..........................................................................................104 Towing Charges ................................................................................................................................106 Train Fares, Intercity ........................................................................................................................108 Truck Lease Payments .................................................................................................................... 110 Trucks, New ...................................................................................................................................... 112 Trucks, Used ..................................................................................................................................... 114 Vehicle Finance Charges ................................................................................................................. 116 Vehicle Insurance ............................................................................................................................. 118 Vehicle Maintenance and Repair (Including Oil Changes and Tires) ......................................120 Vehicle Rentals (Including Rentals on Trips) ...............................................................................122
Appendix: Spending by Product and Service, Ranked by Amount Spent, 2006 ...................................................................124 Glossary ..........................................................................................................................................................131
4 WHO’S BUYING TRANSPORTATION
About the Data in Who’s Buying Transportation Introduction The spending data in Who’s Buying Transportation are based on the Bureau of Labor Statistics’ Consumer Expenditure Survey, an ongoing, nationwide survey of household spending. The Consumer Expenditure Survey is a complete accounting of household expenditures. It includes everything from big-ticket items, such as homes and cars, to small purchases like laundry detergent and videos. The survey does not include expenditures by government, business, or institutions. The lag time between data collection and dissemination is about two years. The data in this report are from the 2006 Consumer Expenditure Survey, unless otherwise noted. To produce this report, New Strategist Publications analyzed the Consumer Expenditure Survey’s average household spending data in a variety of ways, calculating household spending indexes, aggregate (or total) household spending, and market shares. Spending data by age, household income, household type, race, Hispanic origin, region of residence, and education are shown in this report. These analyses are presented in two formats—for all product categories by demographic characteristic and for all demographic characteristics by product category.
Definition of consumer unit The Consumer Expenditure Survey uses the consumer unit rather than the household as its sampling unit. The term “household” is used interchangeably with the term “consumer unit” in this report for convenience, although they are not exactly the same. Some households contain more than one consumer unit. The Bureau of Labor Statistics defines consumer unit as (1) members of a household who are related by blood, marriage, adoption, or other legal arrangements; (2) a person living alone or sharing a household with others or living as a roomer in a private home or lodging house or in permanent living quarters in a hotel or motel, but who is financially independent; or (3) two or more persons living together who pool their income to make joint expenditure decisions. The bureau defines financial independence in terms of “the three major expense categories: housing, food, and other living expenses. To be considered financially independent, at least two of the three major expense categories have to be provided by the respondent.” The Census Bureau uses the household as the sampling unit in the decennial census and in the monthly Current Population Survey. The Census Bureau’s household “consists of all persons who occupy a housing unit. A house, an apartment or other group of rooms, or a single room is regarded as a housing unit when it is occupied or intended for occupancy as separate living quarters; that is, when the occupants do not live and eat with any other persons in the structure and there is direct access from the outside or through a common hall.” The definition goes on to specify that “a household includes the related family members and all the unrelated persons, if any, such as lodgers, foster children, wards, or employees who share the housing unit. A person living alone in a housing unit or a group of unrelated persons sharing a housing unit as partners is also counted as a household. The count of households excludes group quarters.” Because there can be more than one consumer unit in a household, consumer units outnumber households by several million. Young adults under age 25 head most of the additional consumer units.
WHO’S BUYING TRANSPORTATION 5
How to use the tables in this report The starting point for all calculations are the unpublished, detailed average household spending data collected by the Consumer Expenditure Survey. These numbers are shown on the report’s average spending tables and on each of the product-specific tables. New Strategist’s editors calculated the other figures in the report based on the average figures. The indexed spending tables and the indexed spending column (Best Customers) on the product-specific tables reveal whether spending by households in a given segment is above or below the average for all households and by how much. The total (or aggregate) spending tables show the overall size of the market. The market share tables and market share column (Biggest Customers) on the product-specific tables reveal how much spending each household segment controls. These analyses are described in detail below. • Average Spending The average spending figures show the average annual spending of households on transportation in 2006. The Consumer Expenditure Survey produces average spending data for all households in a segment, e.g., all households with a householder aged 25 to 34, not just for those who purchased an item. When examining spending data, it is important to remember that by including both travelers and nontravelers in the calculation, the average is less than the amount spent on the item by buyers. (See Table 1 for the percentage of households that spent on transportation in 2006 and how much the purchasers spent.) Because average spending figures include both buyers and nonbuyers, they reveal spending patterns by demographic characteristic. By knowing who is most likely to spend on an item, marketers can target their advertising and promotions more efficiently, and businesses can determine the market potential of a product or service in a city or neighborhood. By multiplying the average amount households spend on oil changes by the number of households in an area, for example, the owners of a quick lube service can determine where to site their business. • Indexed Spending (Best Customers) The indexed spending figures compare the spending of each household segment with that of the average household. To compute the indexes, New Strategist divides the average amount each household segment spends on an item by average household spending and multiplies the resulting figure by 100. An index of 100 is the average for all households. An index of 125 means the spending of a household segment is 25 percent above average (100 plus 25). An index of 75 indicates spending that is 25 percent below the average for all households (100 minus 25). Indexed spending figures identify the best customers for a product or service. Households with an index of 178 for new cars, for example, are a strong market for this product. Those with an index below 100 are a weak or underserved market. Spending indexes can reveal hidden markets—household segments with a high propensity to buy a particular product or service but which are overshadowed by household segments that account for a larger share of the market. Householders aged 75 or older, for example, account for 16 percent of the market for ship fares, slightly less than the 18 percent accounted for by householders aged 35 to 44. But a look at the indexed spending figures reveals that, in fact, the older householders are by far better customers. Householders aged 75 or older spend 68 percent more than the average household on ship fares, while householders aged 35 to 44 spend 13 percent less. The cruise industry can use this information to target their best customers. Note that because of sampling errors, small differences in index values may be insignificant. But the broader patterns revealed by indexes can guide marketers to the best customers.
6 WHO’S BUYING TRANSPORTATION
• Total (Aggregate) Spending To produce the total (aggregate) spending figures, New Strategist multiplies average spending by the number of households in a segment. The result is the dollar size of the total household market and of each market segment. All totals are shown in thousands of dollars. To convert the numbers in the total spending tables to dollars, you must append “000” to the number. For example, households headed by people aged 45 to 54 spent more than $66 billion ($66,499,166,000) on gasoline and motor oil in 2006. When comparing the total spending figures in this report with total spending estimates from the Bureau of Economic Analysis, other government agencies, or trade associations, keep in mind that the Consumer Expenditure Survey includes only household spending, not spending by businesses or institutions. Sales data also will differ from household spending totals because sales figures for consumer products include the value of goods sold to industries, government, and foreign markets, which may be a significant proportion of sales. • Market Shares (Biggest Customers) New Strategist produces market share figures by converting total (aggregate) spending data into percentages. To calculate the percentage of total spending on an item that is controlled by each demographic segment—i.e., its market share—each segment’s total spending on an item is divided by aggregate household spending on the item. Market shares reveal the biggest customers—the demographic segments that account for the largest share of spending on a particular product or service. In 2006, for example, households headed by people under age 45 accounted for 51 percent of spending on new trucks. By targeting only these householders, manufacturers could reach the majority of their customers. There is a danger here, however. By singlemindedly targeting the biggest customers, businesses cannot nurture potential growth markets. With competition for customers more heated than ever, targeting potential markets is increasingly important to business survival. • Product Specific Tables The product-specific tables reveal at a glance the demographic characteristics of spending by individual product category. These tables show average spending, indexed spending (Best Customers), and market shares (Biggest Customers) by age, income, household type, race and Hispanic origin, region of residence, and education. If you want to see the spending pattern for an individual product at a glance, these are the tables for you.
History and methodology of the Consumer Expenditure Survey The Consumer Expenditure Survey is an ongoing study of the day-to-day spending of American households. In taking the survey, government interviewers collect spending data on products and services as well as the amount and sources of household income, changes in saving and debt, and demographic and economic characteristics of household members. The Bureau of the Census collects data for the Consumer Expenditure Survey under contract with the Bureau of Labor Statistics, which is responsible for analysis and release of the survey data. Since the late 19th century, the federal government has conducted expenditure surveys about every 10 years. Although the results have been used for a variety of purposes, their primary application is to track consumer prices. In 1980, the Consumer Expenditure Survey became continuous with annual release of data (with a lag time of about two years between data collection and release). The survey is used to update prices for the market basket of products and services used in calculating the Consumer Price Index. The Consumer Expenditure Survey consists of two separate surveys: an interview survey and a diary survey. In the interview portion of the survey, respondents are asked each quarter for five consecutive quarters to report their expenditures for the previous three months. The purchase of big-ticket items
WHO’S BUYING TRANSPORTATION 7
such as houses, cars, and major appliances, or recurring expenses such as insurance premiums, utility payments, and rent are recorded by the interview survey. The interview component covers about 95 percent of all expenditures. Expenditures on small, frequently purchased items are recorded during a two-week period by the diary survey. These detailed records include expenses for food and beverages purchased in grocery stores and at restaurants, as well as other items such as tobacco, housekeeping supplies, nonprescription drugs, and personal care products and services. The diary survey is intended to capture expenditures respondents are likely to forget or recall incorrectly over longer periods of time. Two separate, nationally representative samples are used for the interview and diary surveys. For the interview survey, about 7,500 consumer units are interviewed on a rotating panel basis each quarter for five consecutive quarters. Another 7,500 consumer units keep weekly diaries of spending for two consecutive weeks. Data collection is carried out in 105 areas of the country. The Bureau of Labor Statistics reviews, audits, and cleanses the data, then weights them to reflect the number and characteristics of all U.S. consumer units. Like any sample survey, the Consumer Expenditure Survey is subject to two major types of error. Nonsampling error occurs when respondents misinterpret questions or interviewers are inconsistent in the way they ask questions or record answers. Respondents may forget items, recall expenses incorrectly, or deliberately give wrong answers. A respondent may remember how much he or she spent at the grocery store but forget the items picked up at a local convenience store. Nonsampling error can also be caused by mistakes during the various stages of data processing and refinement. Sampling error occurs when a sample does not accurately represent the population it is supposed to represent. This kind of error is present in every sample-based survey and is minimized by using a proper sampling procedure. Standard error tables documenting the extent of sampling error in the Consumer Expenditure Survey are available from the Bureau of Labor Statistics at http://www.bls.gov/cex/ csxstnderror.htm. Although the Consumer Expenditure Survey is the best source of information about the spending behavior of American households, it should be treated with caution because of the above problems.
For more information To find out more about the Consumer Expenditure Survey, contact the specialists at the Bureau of Labor Statistics at (202) 691-6900, or visit the Consumer Expenditure Survey home page at http://www.bls .gov/cex/. The web site includes news releases, technical documentation, and current and historical summary-level data. The detailed average spending data shown in this report are available from the Bureau of Labor Statistics only by special request. For a comprehensive look at detailed household spending data for all products and services, see the 13th edition of Household Spending: Who Spends How Much on What. New Strategist’s books are available in hardcopy or as downloads by visiting http://www.newstrategist.com or by calling 1-800-848-0842.
8 WHO’S BUYING TRANSPORTATION
Table 1. Percent reporting expenditure and amount spent,
Average quarter 2006 (percent of consumer units reporting expenditure and amount spent by purchasers during the average quarter, 2006) average quarter percent reporting expenditure
amount spent by purchasers
TRANSPORTATION Vehicle purchases Cars and trucks, new New cars New trucks Cars and trucks, used Used cars Used trucks Other vehicles New motorcycles Used motorcycles
94.0% 5.9 1.7 0.9 0.9 4.1 2.2 1.9 0.2 0.1 0.1
$2,252.64 143.94 26,288.30 25,083.72 27,506.76 9,539.84 8,403.35 10,562.31 5,908.70 8,750.00 3,304.17
Gasoline and motor oil Gasoline Diesel fuel Gasoline on trips Motor oil
89.7 88.9 1.8 21.1 8.4
620.81 576.50 530.30 150.99 26.10
Other vehicle expenses Vehicle finance charges Automobile finance charges Truck finance charges Motorcycle and plane finance charges Other vehicle finance charges Maintenance and repairs Coolant, additives, brake, transmission fluids Tires Vehicle products and cleaning services Parts, equipment, and accessories Vechicle audio equipment Vehicle video equipment Body work and painting Clutch, transmission repair Drive shaft and rear-end repair Brake work Repair to steering or front-end Repair to engine cooling system Motor tune-up Lube, oil change, and oil filters Front-end alignment, wheel balance, rotation Shock absorber replacement Repair tires and other repair work Exhaust system repair Electrical system repair Motor repair, replacement
80.2 33.0 17.2 18.4 0.9 1.4 52.4 5.3 7.6 3.4 8.6 0.3 0.1 1.2 1.2 0.3 5.1 1.2 1.9 4.7 34.2 2.6 0.3 5.7 0.9 2.3 2.7
723.19 225.96 170.32 219.13 122.35 276.07 309.72 17.20 339.90 44.78 120.47 251.61 921.43 610.12 744.56 623.15 303.32 418.22 287.37 251.75 48.84 134.67 398.33 212.43 285.11 274.33 653.68
WHO’S BUYING TRANSPORTATION 9
average quarter percent reporting expenditure
Auto repair service policy Vehicle accessories, including labor Vehicle air conditioning repair Vehicle insurance Vehicle rental, leases, licenses, other charges Leased and rented vehicles Rented vehicles Auto rental Auto rental, on trips Truck rental Truck rental, on trips Leased vehicles Car lease payments Truck lease payments Vehicle registration, state Vehicle registration, local Driver’s license Vehicle inspection Parking fees Parking fees in home city, excluding residence Parking fees, on trips Tolls or electronic toll passes Tolls on trips Towing charges Global positioning services Automobile service clubs
0.4% 0.5 0.9 49.7 43.6 7.3 3.2 0.6 2.2 0.3 0.2 4.3 2.5 2.2 16.8 1.6 5.1 5.8 12.2 9.6 3.6 8.7 7.2 1.1 0.4 4.7
Public transportation Airline fares Intercity bus fares Intracity mass transit fares Local transportation on trips Taxi fares and limousine service Intercity train fares Ship fares School bus
19.0 10.9 4.3 6.8 5.7 3.2 4.1 2.8 0.1
amount spent by purchasers
$560.26 324.54 324.46 445.89 279.05 1,005.33 290.17 248.83 290.27 252.78 301.56 1,493.43 1,251.22 1,234.95 128.81 128.07 33.61 40.71 71.48 74.87 42.88 54.65 13.94 118.29 102.56 87.39 663.97 766.73 65.42 188.66 58.10 107.18 100.06 491.25 397.50
Note: Expenditures are total net outlays (vehicle purchase price less downpayment or tradein) at the time of purchase, whether or not a vehicle is financed. Source: Calculations by New Strategist based on the 2006 Consumer Expenditure Survey
10 WHO’S BUYING TRANSPORTATION
Household Spending Trends, 2000 to 2006 Between 2000 and 2006, spending by the average household rose by 8.7 percent, after adjusting for inflation. In 2006, the average household spent $48,398, according to the Bureau of Labor Statistics’ Consumer Expenditure Survey, almost $4,000 more than the inflation-adjusted $44,541 of 2000. Spending surged on a number of items between 2000 and 2006. Perhaps not surprisingly, the biggest gainer was gasoline. The average household spent 47 percent more on gasoline in 2006 than in 2000, after adjusting for inflation, and 42 percent more on natural gas. It spent $1,465 on out-of-pocket health insurance costs, 27 percent more than in 2000. Spending on property taxes climbed 24 percent, and spending on education rose 20 percent. Households boosted their spending on a handful of discretionary categories, but by smaller margins. Spending on entertainment grew 9 percent, primarily due to a 24 percent increase in spending on audio and visual equipment and services. Behind this gain is the growing popularity of high-priced high-definition television sets. Spending on food away from home (primarily restaurant meals) climbed 8 percent. The average household cut spending on a number of products and services between 2000 and 2006. Apparel spending fell 14 percent, after adjusting for inflation, driven in part by a 24 percent decline on footwear spending. Spending on vehicle purchases fell 15 percent partially fueled by a 24 percent spending decline on used cars and trucks. The average household’s spending on reading material dropped 32 percent between 2000 and 2006. Personal taxes declined 33 percent on average, from an inflation-adjusted $3,649 in 2000 to $2,432 in 2006. At the time the data shown in this report were collected, average household spending had recovered from the recession of 2001 and the sluggish economy that followed. But the effects of the 2008 slowdown on consumer spending had yet to be felt.
Households are spending less on some items, more on others 60
(percent change in spending by the average household on selected products and services, 2000 to 2006; in 2006 dollars)
47%
40
40%
27%
20
20%
20%
9%
0
0%
–3%
-20 -40
–14%
–20%
–32% readinga material
apparel b
food c at home
entertainment d
education e
health insurance f
gasoline g
WHO’S BUYING TRANSPORTATION 11
Table 2. Household spending trends, 2000 to 2006 (average annual spending of total consumer units, 2000 and 2006; percent change, 2000–06; in 2006 dollars) percent change 2000–06
2006
2000
118,843 $60,533 48,398
109,367 $52,272 44,541
FOOD Food at home Cereals and bakery products Cereals and cereal products Bakery products Meats, poultry, fish, and eggs Beef Pork Other meats Poultry Fish and seafood Eggs Dairy products Fresh milk and cream Other dairy products Fruits and vegetables Fresh fruits Fresh vegetables Processed fruits Processed vegetables Other food at home Sugar and other sweets Fats and oils Miscellaneous foods Nonalcoholic beverages Food prepared by consumer unit on trips
6,111 3,417 446 143 304 797 236 157 105 141 122 37 368 140 228 592 195 193 109 95 1,212 125 86 627 332 43
6,039 3,537 530 183 348 931 279 196 118 170 129 40 380 153 226 610 191 186 135 98 1,085 137 97 512 293 47
1.2 –3.4 –15.9 –21.7 –12.6 –14.4 –15.3 –19.7 –11.2 –16.9 –5.3 –7.0 –3.3 –8.7 0.9 –2.9 2.2 3.7 –19.0 –3.4 11.7 –8.7 –11.5 22.6 13.4 –8.2
Food away from home
2,694
2,502
7.7
Number of consumer units (in 000s) Average before-tax income of consumer units Average annual spending of consumer units
ALCOHOLIC BEVERAGES
8.7% 15.8 8.7
497
436
14.1
16,366 9,673 6,516 3,753 1,649 1,115 2,590 567
14,422 8,329 5,388 3,090 1,333 966 2,381 560
13.5 16.1 20.9 21.5 23.7 15.4 8.8 1.3
3,397 509 1,266 138 1,087 397
2,914 359 1,067 114 1,027 347
16.6 41.6 18.7 21.5 5.9 14.6
Household services Personal services Other household services
948 393 555
801 382 419
18.4 3.0 32.4
Housekeeping supplies Laundry and cleaning supplies Other household products Postage and stationery
640 151 330 159
564 153 265 148
13.4 –1.5 24.7 7.8
1,708 154 463
1,813 124 458
–5.8 24.1 1.1
HOUSING Shelter Owned dwellings Mortgage interest and charges Property taxes Maintenance, repair, insurance, other expenses Rented dwellings Other lodging Utilities, fuels, and public services Natural gas Electricity Fuel oil and other fuels Telephone services Water and other public services
Household furnishings and equipment Household textiles Furniture
12 WHO’S BUYING TRANSPORTATION
Floor coverings Major appliances Small appliances and miscellaneous housewares Miscellaneous household equipment APPAREL AND RELATED SERVICES Men and boys Men, aged 16 or older Boys, aged 2 to 15 Women and girls Women, aged 16 or older Girls, aged 2 to 15 Children under age 2
percent change 2000–06
2006
2000
$48 241 109 693
$52 221 102 856
1,874 444 353 91
2,173 515 403 112
–13.8 –13.8 –12.3 –19.0
751 629 122
849 711 138
–11.5 –11.5 –11.7
–6.8% 8.9 7.0 –19.0
96
96
0.0
Footwear
304
402
–24.3
Other apparel products and services
280
311
–10.1
TRANSPORTATION Vehicle purchases Cars and trucks, new Cars and trucks, used Other vehicles
8,508 3,421 1,798 1,568 54
8,683 4,002 1,879 2,072 50
–2.0 –14.5 –4.3 –24.3 7.3
Gasoline and motor oil
2,227
1,511
47.3
Other vehicle expenses Vehicle finance charges Maintenance and repairs Vehicle insurance Vehicle rentals, leases, licenses, other charges
2,355 298 688 886 482
2,670 384 731 911 645
–11.8 –22.4 –5.8 –2.7 –25.3
505
500
1.0
HEALTH CARE Health insurance Medical services Drugs Medical supplies
2,766 1,465 670 514 117
2,419 1,151 665 487 116
14.4 27.3 0.8 5.5 0.9
ENTERTAINMENT Fees and admissions Audio and visual equipment and services Pets, toys, and playground equipment Other entertainment products and services
2,376 606 906 412 451
2,181 603 728 391 460
8.9 0.5 24.4 5.4 –2.0
Public transportation
PERSONAL CARE PRODUCTS, SERVICES
585
660
–11.4
READING
117
171
–31.5
EDUCATION
888
740
20.0
TOBACCO PRODUCTS, SMOKING SUPPLIES
327
373
–12.4
MISCELLANEOUS
846
908
–6.9
CASH CONTRIBUTIONS
1,869
1,396
33.9
PERSONAL INSURANCE AND PENSIONS Life and other personal insurance Pensions and Social Security
5,270 322 4,948
3,940 467 3,472
33.8 –31.1 –*
PERSONAL TAXES Federal income taxes State and local income taxes Other taxes
2,432 1,711 519 202
3,649 2,820 658 171
–33.4 –39.3 –21.1 18.2
GIFTS FOR PEOPLE IN OTHER HOUSEHOLDS
1,154
1,268
–9.0
* Spending in 2006 on pensions and Social Security is not comparable with 2000 because of changes in methodology. Note: Average spending is rounded to the nearest dollar, but the percent change calculation is based on unrounded figures. Spending by category will not add to total spending because gift spending is also included in the preceding product and service categories and personal taxes are not included in the total. Source: Bureau of Labor Statistics, 2000 and 2006 Consumer Expenditure Surveys, Internet site http://www.bls.gov/cex/; calculations by New Strategist
WHO’S BUYING TRANSPORTATION 13
Household Spending on Transportation, 2006 Transportation is one of the biggest expenses of American households, behind only spending on shelter. In 2006, the average household spent $8,508 on transportation, 2 percent less than in 2000 after adjusting for inflation. Consumers devote 26 percent of transportation spending to gasoline, which makes it the largest single transportation expense and one of the top six household expenses. Spending on gasoline rose 47 percent between 2000 and 2006, after adjusting for inflation. Transportation spending patterns have changed since 2000. The share of the transportation dollar devoted to new trucks (a category that includes sport utility vehicles and minivans) climbed from 9 to 11 percent between 2000 and 2006. During those years, the average household boosted its spending on new trucks by 16 percent, after adjusting for inflation. In 2006, spending on new trucks surpassed spending on new cars, a reversal of the pattern in 2000. Average household spending on used vehicles—both cars and trucks—fell during those years as no-interest and low-interest loans lured consumers to new vehicles. Spending on leased vehicles also fell for the same reason. Vehicle maintenance expenses declined because new vehicles require fewer repairs.
Spending by age The biggest spenders on transportation are householders aged 45 to 54. They devoted $10,111 to gasoline, trucks, cars, and other transportation items in 2006, and they spend the most on gasoline, vehicle insurance, and public transportation including air fares. The biggest spenders on new cars are householders aged 65 to 74. Spending on vehicle finance charges is above average for householders ranging in age from 25 to 54. Householders aged 35 to 44 spend the most on intracity mass transit fares.
Spending by household income Spending on transportation rises steeply with household income as does vehicle ownership—from less than one vehicle on average for households with the lowest incomes to three vehicles for households with incomes of $100,000 or more. Households with incomes of $100,000 or more spent more than $17,000 on transportation in 2006. This income group accounts for only 16 percent of households and 33 percent of all spending, but it controls 45 percent of spending on airline fares, 44 percent of spending on new cars and trucks, and 44 percent of spending on ship fares.
Spending by household type Transportation expenses are directly related to the number of drivers in a household and the number of vehicles owned. Married couples with adult children at home spend the most on transportation—63 percent more than the average household—because they have the most drivers and vehicles. Couples with adult children at home own 3.2 vehicles versus the average household’s 1.9 vehicles. Couples with adult children at home spend 81 percent more than the average household on vehicle insurance and 65 percent more on gasoline. Couples without children at home (most of them empty-nesters) spend the most on ship fares.
Spending by race and Hispanic origin Households headed by Asians spend 14 percent more than average on transportation, while blacks spend 28 percent less than average. Asians spend 92 percent more than the average household on new cars and more than two-and-one-half times the average on airline fares and mass transit. Blacks spend 71 percent more than average on mass transit fares, while Hispanics spend 90 percent more.
WHO’S BUYING TRANSPORTATION 15
Spending by region Spending on transportation is 19 percent above average in the West, where the average household devoted $10,156 to this category in 2006. Transportation spending is 8 percent below average in the Northeast and 12 percent below average in the Midwest. Households in the Northeast spend more than three times the average on mass transit fares, well more than twice the average on tolls, and twice the average on taxi fares.
Spending by education Average household spending on transportation rises steadily with education, as does income. Households headed by college graduates spent an average of $10,943 on transportation in 2006 versus the $7,412 spent by householders who went no further than high school. College graduates account for 54 percent of household spending on rented vehicles. They spend 52 percent more than the average household on new cars and trucks, but their spending on used cars and trucks is average. College graduates spend twice the average on airline fares and nearly twice the average on ship fares.
16 WHO’S BUYING TRANSPORTATION
Table 3. Transportation spending, 2000 to 2006 (average annual household spending on transportation, and percent distribution of spending by type, 2000 and 2006; percent change in spending, 2000–06; in 2006 dollars; ranked by amount spent) 2006 average household spending
Average household spending on transportation $8,507.90 Gasoline and motor oil (including on trips) 2,227.46 Trucks, new 935.23 Vehicle insurance 886.43 Cars, new 862.88 Trucks, used 815.41 Cars, used 752.94 Vehicle maintenance and repair (incl. tires, oil changes) 688.44 Airline fares 334.60 Vehicle finance charges 297.81 Car lease payments 123.12 Truck lease payments 109.17 Tires (purchased, replaced, installed) 103.33 Oil change, lube, and oil filters 66.87 Ship fares 55.02 Motorcycles (new and used) 54.36 Mass transit, intracity fares 51.09 Rented vehicles (including rentals on trips) 37.49 Parking fees, excluding residence 34.88 Taxis and local transportation on trips 20.84 Train fares, intercity 16.29 Automobile service clubs 16.29 Taxi fares and limousine service in home town 13.87 Bus fares, intercity 11.33 Towing charges 5.11 Vehicle video equipment 2.58 Global positioning services 1.60
2000 percent distribution
100.0% 26.2 11.0 10.4 10.1 9.6 8.8 8.1 3.9 3.5 1.4 1.3 1.2 0.8 0.6 0.6 0.6 0.4 0.4 0.2 0.2 0.2 0.2 0.1 0.1 0.0 0.0
average household spending (in 2006$)
$8,683.74 1,511.71 805.39 910.98 1,073.58 888.12 1,183.90 730.26 320.80 384.28 204.69 173.80 102.12 68.78 42.83 41.95 55.50 52.62 21.55 34.03 24.73 9.78 14.22 18.85 5.48 – –
percent distribution
100.0% 17.4 9.3 10.5 12.4 10.2 13.6 8.4 3.7 4.4 2.4 2.0 1.2 0.8 0.5 0.5 0.6 0.6 0.2 0.4 0.3 0.1 0.2 0.2 0.1 – –
percent change 2000–06
–2.0% 47.3 16.1 –2.7 –19.6 –8.2 –36.4 –5.7 4.3 –22.5 –39.9 –37.2 1.2 –2.8 28.5 29.6 –8.0 –28.8 61.8 –38.8 –34.1 66.6 –2.5 –39.9 –6.7 – –
Note: Numbers will not add to total because spending on tires and oil changes is also included in vehicle maintenance and repairs and because some subcategories are not shown. “–” means data are unavailable. Source: Bureau of Labor Statistics, 2000 and 2006 Consumer Expenditure Surveys; calculations by New Strategist
WHO’S BUYING TRANSPORTATION 17
Table 4. Transportation: Average spending by age, 2006 (average annual spending of consumer units (CU) on transportation, by age of consumer unit reference person, 2006) total consumer units 118,843 2.5 $60,533.00 48,398.32
under 25 8,167 2.0 $29,057.00 28,180.58
25 to 34 20,071 2.9 $57,208.00 47,582.37
35 to 44 23,950 3.2 $75,613.00 57,476.34
45 to 54 24,696 2.7 $77,043.00 57,563.25
55 to 64 18,952 2.0 $64,425.00 50,788.79
65 to 74 11,764 1.9 $46,064.00 40,959.64
75+ 11,243 1.5 $29,525.00 28,904.49
TRANSPORTATION Vehicle purchases Cars and trucks, new New cars New trucks Cars and trucks, used Used cars Used trucks Other vehicles New motorcycles Used motorcycles
8,507.90 3,420.83 1,798.12 862.88 935.23 1,568.35 752.94 815.41 54.36 38.50 15.86
5,667.15 2,395.86 943.19 384.64 558.55 1,405.78 747.58 658.20 46.88 – 46.88
9,047.11 3,911.62 1,959.80 641.28 1,318.52 1,881.20 941.18 940.03 70.62 38.38 32.24
9,976.76 4,056.77 1,999.44 924.06 1,075.38 1,972.72 743.71 1,229.00 84.61 78.97 5.65
10,111.13 3,983.39 2,087.09 1,150.55 936.53 1,811.14 882.38 928.75 85.17 57.21 27.96
8,675.59 3,165.28 1,866.75 851.85 1,014.90 1,270.54 623.40 647.14 27.99 26.45 1.54
7,481.39 3,273.04 2,210.47 1,283.05 927.43 1,062.57 662.20 400.37 – – –
3,750.59 1,284.09 519.62 422.57 97.06 764.47 469.41 295.06 – – –
Gasoline and motor oil
2,227.46
1,637.15
2,346.02
2,635.62
2,692.71
2,288.21
1,765.80
933.80
Other vehicle expenses 2,354.98 Vehicle finance charges 297.81 Automobile finance charges 116.91 Truck finance charges 161.28 Motorcycle and plane finance charges 4.16 Other vehicle finance charges 15.46 Maintenance and repairs 688.44 Coolant, additives, brake, transmission fluids 3.66 Tires—purchased, replaced, installed 103.33 Parts, equipment, and accessories 41.25 Vehicle products and cleaning services 5.30 Vehicle video equipment 2.58 Miscellaneous auto repair, servicing 41.15 Body work and painting 29.53 Clutch, transmission repair 36.93 Drive shaft and rear-end repair 6.73 Brake work 61.27 Repair to steering or front-end 19.74 Repair to engine cooling system 22.07 Motor tune-up 47.53 Lube, oil change, and oil filters 66.87 Front-end alignment, wheel balance, rotation 13.79 Shock absorber replacement 4.78 Tire repair and other repair work 48.52 Vehicle air conditioning repair 11.94 Exhaust system repair 10.15 Electrical system repair 24.69 Motor repair, replacement 69.29 Auto repair service policy 8.74 Vehicle insurance 886.43 Vehicle rental, leases, licenses, other charges 482.30 Leased and rented vehicles 294.36 Rented vehicles 37.49 Leased vehicles 256.87 Car lease payments 123.12 Truck lease payments 109.17 Vehicle registration, state 86.30 Vehicle registration, local 8.35 Driver’s license 6.87 Vehicle inspection 9.51
1,413.45 198.78 93.08 98.95 5.71 1.04 400.25 3.42 67.49 33.04 2.76 – 15.48 25.14 10.85 5.83 30.86 5.70 13.99 19.17 39.71 9.40 1.23 18.11 6.63 3.74 8.87 34.49 1.49 548.03 266.39 153.40 18.47 134.93 67.27 50.14 43.21 4.97 7.47 6.19
2,341.67 401.36 161.05 221.02 6.80 12.50 623.56 4.17 99.33 45.87 4.73 3.69 35.50 29.22 28.43 10.17 51.35 17.10 19.96 41.82 61.59 12.65 3.74 38.46 8.57 8.66 22.41 61.43 10.11 822.19 494.56 305.31 29.07 276.24 104.47 118.65 85.88 9.92 6.74 7.95
2,725.28 374.18 122.47 235.38 4.70 11.63 743.81 4.36 121.48 44.30 5.59 0.76 46.42 29.10 56.47 6.51 68.49 18.76 19.04 47.66 73.59 13.88 7.77 49.42 13.93 14.67 23.46 66.61 6.21 976.08 631.22 429.10 41.75 387.36 174.07 186.41 93.09 9.01 7.00 9.99
2,819.22 334.18 141.55 168.95 6.43 17.26 866.14 4.61 132.73 57.39 8.21 4.35 46.37 37.48 40.56 9.35 87.32 27.58 28.58 55.49 79.60 18.50 5.15 59.01 12.91 8.75 29.93 98.25 6.94 1,105.17 513.73 293.38 52.25 241.13 111.35 108.16 101.03 9.11 8.18 12.03
2,638.14 299.26 114.43 154.27 2.06 28.51 799.05 3.60 107.13 38.65 5.24 0.26 61.62 27.95 36.47 3.97 69.52 27.12 26.24 68.05 77.74 15.62 4.75 63.07 10.15 12.44 29.81 80.52 14.23 941.06 598.76 374.78 42.32 332.46 186.71 128.76 102.88 9.29 6.85 10.57
1,971.64 189.81 85.18 76.27 0.06 28.30 639.76 2.21 87.94 26.66 4.63 8.69 34.71 32.73 41.74 5.14 48.73 12.13 25.05 48.25 64.58 11.46 4.66 54.96 12.00 10.82 26.29 62.21 14.17 805.89 336.18 175.33 42.80 132.53 79.42 40.16 79.63 7.34 5.88 9.60
1,178.63 52.82 26.81 25.96 – 0.04 370.62 0.93 42.97 16.71 2.05 – 19.56 16.09 17.18 2.25 27.59 15.08 13.69 25.23 37.89 7.81 2.22 32.32 18.43 6.39 21.06 39.18 5.98 567.68 187.51 81.29 11.19 70.10 52.81 11.95 50.53 4.36 4.63 6.23
Number of consumer units (in 000s) Number of persons per CU Average before-tax income of CU Average spending of CU, total
18 WHO’S BUYING TRANSPORTATION
total consumer units Parking fees $34.88 Parking fees in home city, excl. residence 28.75 Parking fees on trips 6.14 Tolls 15.02 Tolls on trips 4.02 Towing charges 5.11 Global positioning services 1.60 Automobile service clubs 16.29 ‘Public transportation Airline fares Intercity bus fares Intracity mass transit fares Taxis and local transportation on trips Taxi fares and limousine service in home town Intercity train fares Ship fares School bus
504.63 334.60 11.33 51.09 20.84 13.87 16.29 55.02 1.59
under 25 $35.90 33.43 2.47 4.43 2.24 5.24 – 3.34
25 to 34 $38.20 32.71 5.49 21.69 4.87 5.88 0.54 7.57
35 to 44 $40.45 33.43 7.02 19.20 4.08 6.19 1.30 11.81
45 to 54 $38.58 30.88 7.70 17.11 4.50 6.97 2.31 20.52
55 to 64 $42.39 34.92 7.47 16.78 4.76 4.17 1.80 24.49
65 to 74 $21.00 15.76 5.24 4.06 4.09 2.59 3.29 23.37
75+ $10.08 6.76 3.32 5.70 1.32 1.49 1.59 20.30
220.69 143.75 7.43 42.69 7.54 9.79 5.77 3.36 0.35
447.80 291.43 8.01 62.36 14.14 16.33 12.18 43.11 0.24
559.08 381.28 9.42 68.41 19.52 10.90 18.75 47.93 2.85
615.81 405.79 11.04 59.16 24.28 23.30 20.62 68.51 3.11
583.96 398.09 17.81 49.42 31.41 8.60 21.94 56.29 0.41
470.90 323.16 13.60 21.61 25.87 11.58 13.04 59.62 2.44
354.08 199.45 11.47 16.09 14.61 9.72 10.39 92.35 –
Note: Numbers may not add to total because some categories are not shown. “–” means sample is too small to make a reliable estimate. Source: Bureau of Labor Statistics, unpublished tables from the 2006 Consumer Expenditure Survey
WHO’S BUYING TRANSPORTATION 19
Table 5. Transportation: Indexed spending by age, 2006 (indexed average annual spending of consumer units (CU) on transportation, by age of consumer unit reference person, 2006; index definition: an index of 100 is the average for all consumer units; an index of 132 means that spending by consumer units in that group is 32 percent above the average for all consumer units; an index of 68 indicates spending that is 32 percent below the average for all consumer units)
Average spending of CU, total Average spending of CU, index
total consumer units $48,398 100
under 25 $28,181 58
25 to 34 $47,582 98
35 to 44 $57,476 119
45 to 54 $57,563 119
55 to 64 $50,789 105
65 to 74 $40,960 85
75+ $28,904 60
100 100 100 100 100 100 100 100 100 100 100
67 70 52 45 60 90 99 81 86 – 296
106 114 109 74 141 120 125 115 130 100 203
117 119 111 107 115 126 99 151 156 205 36
119 116 116 133 100 115 117 114 157 149 176
102 93 104 99 109 81 83 79 51 69 10
88 96 123 149 99 68 88 49 – – –
44 38 29 49 10 49 62 36 – – –
TRANSPORTATION Vehicle purchases Cars and trucks, new New cars New trucks Cars and trucks, used Used cars Used trucks Other vehicles New motorcycles Used motorcycles Gasoline and motor oil
100
73
105
118
121
103
79
42
Other vehicle expenses Vehicle finance charges Automobile finance charges Truck finance charges Motorcycle and plane finance charges Other vehicle finance charges Maintenance and repairs Coolant, additives, brake and transmission fluids Tires—purchased, replaced, installed Parts, equipment, and accessories Vehicle products and cleaning services Vehicle video equipment Miscellaneous auto repair, servicing Body work and painting Clutch, transmission repair Drive shaft and rear-end repair Brake work Repair to steering or front-end Repair to engine cooling system Motor tune-up Lube, oil change, and oil filters Front-end alignment, wheel balance, rotation Shock absorber replacement Tire repair and other repair work Vehicle air conditioning repair Exhaust system repair Electrical system repair Motor repair, replacement Auto repair service policy Vehicle insurance Vehicle rental, leases, licenses, other charges Leased and rented vehicles Rented vehicles Leased vehicles Car lease payments Truck lease payments Vehicle registration, state Vehicle registration, local Driver’s license Vehicle inspection
100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
60 67 80 61 137 7 58 93 65 80 52 – 38 85 29 87 50 29 63 40 59 68 26 37 56 37 36 50 17 62 55 52 49 53 55 46 50 60 109 65
99 135 138 137 163 81 91 114 96 111 89 143 86 99 77 151 84 87 90 88 92 92 78 79 72 85 91 89 116 93 103 104 78 108 85 109 100 119 98 84
116 126 105 146 113 75 108 119 118 107 105 29 113 99 153 97 112 95 86 100 110 101 163 102 117 145 95 96 71 110 131 146 111 151 141 171 108 108 102 105
120 112 121 105 155 112 126 126 128 139 155 169 113 127 110 139 143 140 129 117 119 134 108 122 108 86 121 142 79 125 107 100 139 94 90 99 117 109 119 126
112 100 98 96 50 184 116 98 104 94 99 10 150 95 99 59 113 137 119 143 116 113 99 130 85 123 121 116 163 106 124 127 113 129 152 118 119 111 100 111
84 64 73 47 1 183 93 60 85 65 87 337 84 111 113 76 80 61 114 102 97 83 97 113 101 107 106 90 162 91 70 60 114 52 65 37 92 88 86 101
50 18 23 16 – 0 54 25 42 41 39 – 48 54 47 33 45 76 62 53 57 57 46 67 154 63 85 57 68 64 39 28 30 27 43 11 59 52 67 66
20 WHO’S BUYING TRANSPORTATION
total consumer units Parking fees 100 Parking fees in home city, excl. residence 100 Parking fees on trips 100 Tolls 100 Tolls on trips 100 Towing charges 100 Global positioning services 100 Automobile service clubs 100 Public transportation Airline fares Intercity bus fares Intracity mass transit fares Taxis and local transportation on trips Taxi fares and limousine service in home town Intercity train fares Ship fares School bus
100 100 100 100 100 100 100 100 100
under 25 103 116 40 29 56 103 – 21
25 to 34 110 114 89 144 121 115 34 46
35 to 44 116 116 114 128 101 121 81 72
45 to 54 111 107 125 114 112 136 144 126
55 to 64 122 121 122 112 118 82 113 150
65 to 74 60 55 85 27 102 51 206 143
75+ 29 24 54 38 33 29 99 125
44 43 66 84 36 71 35 6 22
89 87 71 122 68 118 75 78 15
111 114 83 134 94 79 115 87 179
122 121 97 116 117 168 127 125 196
116 119 157 97 151 62 135 102 26
93 97 120 42 124 83 80 108 153
70 60 101 31 70 70 64 168 –
Note: “–” means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey
WHO’S BUYING TRANSPORTATION 21
Table 6. Transportation: Total spending by age, 2006 (total annual spending on transportation, by consumer unit (CU) age group, 2006; consumer units and dollars in thousands) total consumer units 118,843 $5,751,801,544
under 25 8,167 $230,150,797
1,011,104,360 406,541,700 213,693,975 102,547,248 111,145,539 186,387,419 89,481,648 96,905,771 6,460,305 4,575,456 1,884,850
46,283,614 19,566,989 7,703,033 3,141,355 4,561,678 11,481,005 6,105,486 5,375,519 382,869 – 382,869
181,584,545 78,510,125 39,335,146 12,871,131 26,464,015 37,757,565 18,890,424 18,867,342 1,417,414 770,325 647,089
238,943,402 97,159,642 47,886,588 22,131,237 25,755,351 47,246,644 17,811,855 29,434,550 2,026,410 1,891,332 135,318
Gasoline and motor oil
264,718,029
13,370,604
47,086,967
Other vehicle expenses Vehicle finance charges Automobile finance charges Truck finance charges Motorcycle and plane finance charges Other vehicle finance charges Maintenance and repairs Coolant, additives, brake and transmission fluids Tires—purchased, replaced, installed Parts, equipment, and accessories Vehicle products and cleaning services Vehicle video equipment Miscellaneous auto repair, servicing Body work and painting Clutch, transmission repair Drive shaft and rear-end repair Brake work Repair to steering or front-end Repair to engine cooling system Motor tune-up Lube, oil change, and oil filters Front-end alignment, wheel balance, rotation Shock absorber replacement Tire repair and other repair work Vehicle air conditioning repair Exhaust system repair Electrical system repair Motor repair, replacement Auto repair service policy Vehicle insurance Vehicle rental, leases, licenses, other charges Leased and rented vehicles Rented vehicles Leased vehicles Car lease payments Truck lease payments Vehicle registration, state Vehicle registration, local Driver’s license Vehicle inspection
279,872,888 35,392,634 13,893,935 19,166,999 494,387 1,837,313 81,816,275
11,543,646 1,623,436 760,184 808,125 46,634 8,494 3,268,842
46,999,659 8,055,697 3,232,435 4,436,092 136,483 250,888 12,515,473
434,965 12,280,047 4,902,274 629,868 306,615 4,890,389 3,509,434 4,388,872 799,813 7,281,511 2,345,961 2,622,865 5,648,608 7,947,031
27,931 551,191 269,838 22,541 – 126,425 205,318 88,612 47,614 252,034 46,552 114,256 156,561 324,312
1,638,845 568,070 5,766,262 1,418,985 1,206,256 2,934,234 8,234,631 1,038,688 105,346,000 57,317,979 34,982,625 4,455,424 30,527,201 14,631,950 12,974,090 10,256,151 992,339 816,451 1,130,197
Number of consumer units Total spending of all CUs TRANSPORTATION Vehicle purchases Cars and trucks, new New cars New trucks Cars and trucks, used Used cars Used trucks Other vehicles New motorcycles Used motorcycles
22 WHO’S BUYING TRANSPORTATION
25 to 34 35 to 44 45 to 54 20,071 23,950 24,696 $955,025,748 $1,376,558,343 $1,421,582,022
55 to 64 18,952 $962,549,148
65 to 74 11,764 $481,849,205
75+ 11,243 $324,973,181
249,704,466 98,373,799 51,542,775 28,413,983 23,128,545 44,727,913 21,791,256 22,936,410 2,103,358 1,412,858 690,500
164,419,782 59,988,387 35,378,646 16,144,261 19,234,385 24,079,274 11,814,677 12,264,597 530,466 501,280 29,186
88,011,072 38,504,043 26,003,969 15,093,800 10,910,287 12,500,073 7,790,121 4,709,953 – – –
42,167,883 14,437,024 5,842,088 4,750,955 1,091,246 8,594,936 5,277,577 3,317,360 – – –
63,123,099
66,499,166
43,366,156
20,772,871
10,498,713
65,270,456 8,961,611 2,933,157 5,637,351 112,565 278,539 17,814,250
69,623,457 8,252,909 3,495,719 4,172,389 158,795 426,253 21,390,193
49,998,029 5,671,576 2,168,677 2,923,725 39,041 540,322 15,143,596
23,194,373 2,232,925 1,002,058 897,240 706 332,921 7,526,137
13,251,337 593,855 301,425 291,868 – 450 4,166,881
83,696 1,993,652 920,657 94,936 74,062 712,521 586,475 570,619 204,122 1,030,646 343,214 400,617 839,369 1,236,173
104,422 2,909,446 1,060,985 133,881 18,202 1,111,759 696,945 1,352,457 155,915 1,640,336 449,302 456,008 1,141,457 1,762,481
113,849 3,277,900 1,417,303 202,754 107,428 1,145,154 925,606 1,001,670 230,908 2,156,455 681,116 705,812 1,370,381 1,965,802
68,227 2,030,328 732,495 99,308 4,928 1,167,822 529,708 691,179 75,239 1,317,543 513,978 497,300 1,289,684 1,473,328
25,998 1,034,526 313,628 54,467 102,229 408,328 385,036 491,029 60,467 573,260 142,697 294,688 567,613 759,719
10,456 483,112 187,871 23,048 – 219,913 180,900 193,155 25,297 310,194 169,544 153,917 283,661 425,997
76,770 10,045 147,904 54,147 30,545 72,441 281,680 12,169 4,475,761
253,898 75,066 771,931 172,008 173,815 449,791 1,232,962 202,918 16,502,175
332,426 186,092 1,183,609 333,624 351,347 561,867 1,595,310 148,730 23,377,116
456,876 127,184 1,457,311 318,825 216,090 739,151 2,426,382 171,390 27,293,278
296,030 90,022 1,195,303 192,363 235,763 564,959 1,526,015 269,687 17,834,969
134,815 54,820 646,549 141,168 127,286 309,276 731,838 166,696 9,480,490
87,808 24,959 363,374 207,208 71,843 236,778 440,501 67,233 6,382,426
2,175,607 1,252,818 150,844 1,101,973 549,394 409,493 352,896 40,590 61,007 50,554
9,926,314 6,127,877 583,464 5,544,413 2,096,817 2,381,424 1,723,697 199,104 135,279 159,564
15,117,719 10,276,945 999,913 9,277,272 4,168,977 4,464,520 2,229,506 215,790 167,650 239,261
12,687,076 7,245,312 1,290,366 5,954,946 2,749,900 2,671,119 2,495,037 224,981 202,013 297,093
11,347,700 7,102,831 802,049 6,300,782 3,538,528 2,440,260 1,949,782 176,064 129,821 200,323
3,954,822 2,062,582 503,499 1,559,083 934,297 472,442 936,767 86,348 69,172 112,934
2,108,175 913,943 125,809 788,134 593,743 134,354 568,109 49,019 52,055 70,044
Parking fees Parking fees in home city, excluding residence Parking fees on trips Tolls Tolls on trips Towing charges Global positioning services Automobile service clubs Public transportation Airline fares Intercity bus fares Intracity mass transit fares Taxis and local transportation on trips Taxi fares, limousine service in home town Intercity train fares Ship fares School bus
total consumer units $4,145,244
under 25 $293,195
25 to 34 $766,712
35 to 44 $968,778
45 to 54 $952,772
55 to 64 $803,375
65 to 74 $247,044
75+ $113,329
3,416,736 729,696 1,785,022 477,749 607,288 190,149 1,935,952
273,023 20,172 36,180 18,294 42,795 – 27,278
656,522 110,190 435,340 97,746 118,017 10,838 151,937
800,649 168,129 459,840 97,716 148,251 31,135 282,850
762,612 190,159 422,549 111,132 172,131 57,048 506,762
661,804 141,571 318,015 90,212 79,030 34,114 464,134
185,401 61,643 47,762 48,115 30,469 38,704 274,925
76,003 37,327 64,085 14,841 16,752 17,876 228,233
59,971,743 39,764,868 1,346,491 6,071,689 2,476,688 1,648,352 1,935,952 6,538,742 188,960
1,802,375 1,174,006 60,681 348,649 61,579 79,955 47,124 27,441 2,858
8,987,794 5,849,292 160,769 1,251,628 283,804 327,759 244,465 865,261 4,817
13,389,966 9,131,656 225,609 1,638,420 467,504 261,055 449,063 1,147,924 68,258
15,208,044 10,021,390 272,644 1,461,015 599,619 575,417 509,232 1,691,923 76,805
11,067,210 7,544,602 337,535 936,608 595,282 162,987 415,807 1,066,808 7,770
5,539,668 3,801,654 159,990 254,220 304,335 136,227 153,403 701,370 28,704
3,980,921 2,242,416 128,957 180,900 164,260 109,282 116,815 1,038,291 –
Note: Numbers may not add to total because some categories are not shown and because of rounding. “–” means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey
WHO’S BUYING TRANSPORTATION 23
Table 7. Transportation: Market shares by age, 2006 (percentage of total annual spending on transportation accounted for by consumer unit age groups, 2006)
Share of total consumer units Share of total before-tax income Share of total spending
total consumer units 100.0% 100.0 100.0
under 25 6.9% 3.3 4.0
25 to 34 16.9% 16.0 16.6
35 to 44 20.2% 25.2 23.9
45 to 54 20.8% 26.4 24.7
55 to 64 15.9% 17.0 16.7
65 to 74 9.9% 7.5 8.4
75+ 9.5% 4.6 5.6
TRANSPORTATION Vehicle purchases Cars and trucks, new New cars New trucks Cars and trucks, used Used cars Used trucks Other vehicles New motorcycles Used motorcycles
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
4.6 4.8 3.6 3.1 4.1 6.2 6.8 5.5 5.9 – 20.3
18.0 19.3 18.4 12.6 23.8 20.3 21.1 19.5 21.9 16.8 34.3
23.6 23.9 22.4 21.6 23.2 25.3 19.9 30.4 31.4 41.3 7.2
24.7 24.2 24.1 27.7 20.8 24.0 24.4 23.7 32.6 30.9 36.6
16.3 14.8 16.6 15.7 17.3 12.9 13.2 12.7 8.2 11.0 1.5
8.7 9.5 12.2 14.7 9.8 6.7 8.7 4.9 – – –
4.2 3.6 2.7 4.6 1.0 4.6 5.9 3.4 – – –
Gasoline and motor oil
100.0
5.1
17.8
23.8
25.1
16.4
7.8
4.0
Other vehicle expenses Vehicle finance charges Automobile finance charges Truck finance charges Motorcycle and plane finance charges Other vehicle finance charges Maintenance and repairs Coolant, additives, brake, transmission fluids Tires—purchased, replaced, installed Parts, equipment, and accessories Vehicle products and cleaning services Vehicle video equipment Miscellaneous auto repair, servicing Body work and painting Clutch, transmission repair Drive shaft and rear-end repair Brake work Repair to steering or front-end Repair to engine cooling system Motor tune-up Lube, oil change, and oil filters Front-end alignment, wheel balance, rotation Shock absorber replacement Tire repair and other repair work Vehicle air conditioning repair Exhaust system repair Electrical system repair Motor repair, replacement Auto repair service policy Vehicle insurance Vehicle rental, leases, licenses, other charges Leased and rented vehicles Rented vehicles Leased vehicles Car lease payments Truck lease payments Vehicle registration, state Vehicle registration, local Driver’s license Vehicle inspection
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
4.1 4.6 5.5 4.2 9.4 0.5 4.0 6.4 4.5 5.5 3.6 – 2.6 5.9 2.0 6.0 3.5 2.0 4.4 2.8 4.1 4.7 1.8 2.6 3.8 2.5 2.5 3.4 1.2 4.2 3.8 3.6 3.4 3.6 3.8 3.2 3.4 4.1 7.5 4.5
16.8 22.8 23.3 23.1 27.6 13.7 15.3 19.2 16.2 18.8 15.1 24.2 14.6 16.7 13.0 25.5 14.2 14.6 15.3 14.9 15.6 15.5 13.2 13.4 12.1 14.4 15.3 15.0 19.5 15.7 17.3 17.5 13.1 18.2 14.3 18.4 16.8 20.1 16.6 14.1
23.3 25.3 21.1 29.4 22.8 15.2 21.8 24.0 23.7 21.6 21.3 5.9 22.7 19.9 30.8 19.5 22.5 19.2 17.4 20.2 22.2 20.3 32.8 20.5 23.5 29.1 19.1 19.4 14.3 22.2 26.4 29.4 22.4 30.4 28.5 34.4 21.7 21.7 20.5 21.2
24.9 23.3 25.2 21.8 32.1 23.2 26.1 26.2 26.7 28.9 32.2 35.0 23.4 26.4 22.8 28.9 29.6 29.0 26.9 24.3 24.7 27.9 22.4 25.3 22.5 17.9 25.2 29.5 16.5 25.9 22.1 20.7 29.0 19.5 18.8 20.6 24.3 22.7 24.7 26.3
17.9 16.0 15.6 15.3 7.9 29.4 18.5 15.7 16.5 14.9 15.8 1.6 23.9 15.1 15.7 9.4 18.1 21.9 19.0 22.8 18.5 18.1 15.8 20.7 13.6 19.5 19.3 18.5 26.0 16.9 19.8 20.3 18.0 20.6 24.2 18.8 19.0 17.7 15.9 17.7
8.3 6.3 7.2 4.7 0.1 18.1 9.2 6.0 8.4 6.4 8.6 33.3 8.3 11.0 11.2 7.6 7.9 6.1 11.2 10.0 9.6 8.2 9.7 11.2 9.9 10.6 10.5 8.9 16.0 9.0 6.9 5.9 11.3 5.1 6.4 3.6 9.1 8.7 8.5 10.0
4.7 1.7 2.2 1.5 – 0.0 5.1 2.4 3.9 3.8 3.7 – 4.5 5.2 4.4 3.2 4.3 7.2 5.9 5.0 5.4 5.4 4.4 6.3 14.6 6.0 8.1 5.3 6.5 6.1 3.7 2.6 2.8 2.6 4.1 1.0 5.5 4.9 6.4 6.2
24 WHO’S BUYING TRANSPORTATION
total consumer units Parking fees 100.0% Parking fees in home city, excl. residence 100.0 Parking fees on trips 100.0 Tolls 100.0 Tolls on trips 100.0 Towing charges 100.0 Global positioning services 100.0 Automobile service clubs 100.0 Public transportation Airline fares Intercity bus fares Intracity mass transit fares Taxis and local transportation on trips Taxi fares and limousine service in home town Intercity train fares Ship fares School bus
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
under 25 7.1% 8.0 2.8 2.0 3.8 7.0 – 1.4
25 to 34 18.5% 19.2 15.1 24.4 20.5 19.4 5.7 7.8
35 to 44 23.4% 23.4 23.0 25.8 20.5 24.4 16.4 14.6
45 to 54 23.0% 22.3 26.1 23.7 23.3 28.3 30.0 26.2
55 to 64 19.4% 19.4 19.4 17.8 18.9 13.0 17.9 24.0
65 to 74 6.0% 5.4 8.4 2.7 10.1 5.0 20.4 14.2
3.0 3.0 4.5 5.7 2.5 4.9 2.4 0.4 1.5
15.0 14.7 11.9 20.6 11.5 19.9 12.6 13.2 2.5
22.3 23.0 16.8 27.0 18.9 15.8 23.2 17.6 36.1
25.4 25.2 20.2 24.1 24.2 34.9 26.3 25.9 40.6
18.5 19.0 25.1 15.4 24.0 9.9 21.5 16.3 4.1
9.2 9.6 11.9 4.2 12.3 8.3 7.9 10.7 15.2
75+ 2.7% 2.2 5.1 3.6 3.1 2.8 9.4 11.8 6.6 5.6 9.6 3.0 6.6 6.6 6.0 15.9 –
Note: Numbers may not add to total because of rounding. “–” means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey
WHO’S BUYING TRANSPORTATION 25
Table 8. Transportation: Average spending by income, 2006 (average annual spending on transportation, by before-tax income of consumer units (CU), 2006) total consumer units 118,843 2.5 $60,533.00 48,398.32
under $20,000 26,075 1.7 $10,783.16 20,824.88
$20,000– $39,999 27,536 2.2 $29,630.20 31,972.38
$40,000– $49,999 11,446 2.5 $44,620.00 39,572.86
$50,000– $69,999 17,674 2.8 $59,253.00 50,085.83
$70,000– $79,999 6,956 2.8 $74,647.00 57,351.54
$80,000– $99,999 10,241 3.0 $88,763.00 65,809.86
$100,000 or more 18,915 3.2 $164,452.00 100,386.31
TRANSPORTATION Vehicle purchases Cars and trucks, new New cars New trucks Cars and trucks, used Used cars Used trucks Other vehicles New motorcycles Used motorcycles
8,507.90 3,420.83 1,798.12 862.88 935.23 1,568.35 752.94 815.41 54.36 38.50 15.86
3,077.22 969.26 409.83 321.28 116.45 553.17 336.13 217.03 10.72 3.86 8.80
5,889.86 2,308.35 837.61 353.62 483.99 1,457.36 689.16 768.20 13.37 6.07 10.44
6,843.77 2,229.46 927.33 553.79 373.54 1,251.20 564.02 687.18 50.93 20.78 30.15
9,422.70 3,596.68 1,760.63 771.12 989.50 1,780.49 742.70 1,037.79 55.57 35.08 20.49
10,920.77 4,322.02 2,265.75 894.71 1,371.04 2,030.79 1,152.84 877.95 25.48 9.75 15.73
12,206.32 5,155.06 2,793.51 1,217.41 1,576.10 2,205.86 1,006.21 1,199.65 155.69 104.17 51.52
17,058.65 7,706.00 4,961.19 2,419.97 2,541.21 2,607.77 1,260.02 1,347.75 137.05 130.77 6.29
Gasoline and motor oil
2,227.46
1,020.62
1,733.41
2,146.62
2,599.07
2,909.33
3,138.28
3,568.09
Other vehicle expenses 2,354.98 Vehicle finance charges 297.81 Automobile finance charges 116.91 Truck finance charges 161.28 Motorcycle and plane finance charges 4.16 Other vehicle finance charges 15.46 Maintenance and repairs 688.44 Coolant, additives, brake, transmission fluids 3.66 Tires—purchased, replaced, installed 103.33 Parts, equipment, and accessories 41.25 Vehicle products and cleaning services 5.30 Vehicle video equipment 2.58 Miscellaneous auto repair, servicing 41.15 Body work and painting 29.53 Clutch, transmission repair 36.93 Drive shaft and rear-end repair 6.73 Brake work 61.27 Repair to steering or front-end 19.74 Repair to engine cooling system 22.07 Motor tune-up 47.53 Lube, oil change, and oil filters 66.87 Front-end alignment, wheel balance, rotation 13.79 Shock absorber replacement 4.78 Tire repair and other repair work 48.52 Vehicle air conditioning repair 11.94 Exhaust system repair 10.15 Electrical system repair 24.69 Motor repair, replacement 69.29 Auto repair service policy 8.74 Vehicle insurance 886.43 Vehicle rental, leases, licenses, other charges 482.30 Leased and rented vehicles 294.36 Rented vehicles 37.49 Leased vehicles 256.87 Car lease payments 123.12 Truck lease payments 109.17 Vehicle registration, state 86.30 Vehicle registration, local 8.35 Driver’s license 6.87 Vehicle inspection 9.51
899.17 65.56 29.11 33.75 0.22 2.62 300.63 2.29 40.24 15.75 2.23 0.38 11.79 13.06 7.44 4.46 23.27 8.22 11.99 18.95 31.36 6.70 1.55 21.01 7.40 7.06 14.46 43.48 1.92 374.10 158.88 83.21 9.01 74.19 39.91 24.25 34.54 3.80 4.58 5.07
1,612.77 186.44 85.89 93.69 1.65 5.22 485.61 3.51 64.36 29.60 8.39 0.15 26.49 15.51 23.98 5.48 39.21 13.14 19.57 35.18 49.54 12.92 3.49 33.74 9.06 8.17 21.97 51.42 9.85 694.68 246.04 119.91 20.84 99.07 44.91 46.55 60.09 5.08 6.36 7.65
2,192.71 298.12 128.18 148.92 2.72 18.30 614.99 5.23 89.52 34.14 3.68 0.42 42.77 24.38 35.14 5.90 72.71 16.14 20.92 35.95 64.12 10.36 3.37 29.55 10.04 8.17 17.77 61.44 9.66 911.00 368.60 208.69 24.51 184.18 112.05 57.09 80.22 6.62 6.55 10.89
2,727.57 374.24 142.39 212.68 6.70 12.48 788.64 4.67 124.20 60.13 5.63 1.27 42.90 33.75 45.38 8.13 61.79 27.92 24.75 42.15 75.68 13.24 4.01 55.19 10.19 11.56 27.51 88.06 13.35 1,042.81 521.88 325.08 33.76 291.32 120.52 151.05 100.98 8.39 8.10 12.62
3,115.40 471.95 178.52 260.35 11.10 21.98 861.29 4.04 133.87 66.96 5.47 – 35.09 21.20 65.79 1.05 54.83 31.93 18.87 41.74 88.61 12.88 2.76 46.72 19.35 11.70 29.81 93.04 7.86 1,159.07 623.09 381.77 41.19 340.59 126.89 145.11 117.23 16.94 7.43 11.96
3,229.42 496.95 175.35 291.86 7.84 21.89 897.09 3.39 161.75 47.16 6.36 4.10 59.88 38.28 48.18 12.64 87.19 25.98 22.29 52.23 96.31 17.66 4.97 70.07 13.27 9.53 34.50 67.44 12.09 1,175.85 659.54 414.75 51.11 363.64 168.61 173.25 122.14 13.15 8.32 12.28
4,431.61 536.60 198.17 287.79 7.36 43.29 1,287.06 3.86 193.01 67.38 5.14 12.37 86.38 70.16 72.91 9.77 126.66 31.91 38.84 116.55 110.58 25.64 13.34 102.19 21.75 16.96 37.13 110.36 10.18 1,453.89 1,154.06 765.20 103.60 661.60 334.78 261.83 154.98 14.61 8.85 12.16
Number of consumer units (in 000s) Number of persons per CU Average before-tax income of CU Average spending of CU, total
26 WHO’S BUYING TRANSPORTATION
total consumer units
under $20,000
$20,000– $39,999
$40,000– $49,999
$50,000– $69,999
$70,000– $79,999
$80,000– $99,999
$100,000 or more
Parking fees Parking fees in home city, excl. residence Parking fees on trips Tolls Tolls on trips Towing charges Global positioning services Automobile service clubs
$34.88 28.75 6.14 15.02 4.02 5.11 1.60 16.29
$13.92 13.01 0.91 2.74 1.19 3.48 0.21 6.24
$14.65 11.89 2.75 12.23 2.56 4.58 0.74 12.19
$21.99 16.80 5.19 6.25 3.81 6.03 1.54 16.00
$29.99 25.59 4.41 10.25 3.70 4.61 0.87 17.28
$28.47 22.82 5.65 25.03 4.95 8.85 3.01 17.45
$37.34 27.85 9.49 18.25 5.80 4.47 1.98 21.04
$106.63 87.82 18.81 38.22 9.19 7.01 4.86 32.36
Public transportation Airline fares Intercity bus fares Intracity mass transit fares Taxis and local transportation on trips Taxi fares and limousine service in home town Intercity train fares Ship fares School bus
504.63 334.60 11.33 51.09 20.84 13.87 16.29 55.02 1.59
188.16 101.46 6.38 43.68 9.06 7.88 5.78 13.74 0.39
235.34 138.55 7.77 43.32 11.09 10.40 10.13 12.35 1.73
274.97 169.88 6.11 41.12 10.56 14.18 9.59 23.28 0.24
499.36 324.64 13.08 45.63 17.09 8.88 10.59 79.18 0.28
574.02 424.63 10.18 41.43 19.80 18.65 17.53 33.81 7.99
683.56 470.34 16.50 33.04 28.32 12.69 19.38 102.77 0.52
1,352.95 943.78 22.47 97.04 57.32 29.09 47.02 152.61 3.61
Note: Numbers may not add to total because some categories are not shown. “–” means sample is too small to make a reliable estimate. Source: Bureau of Labor Statistics, unpublished tables from the 2006 Consumer Expenditure Survey
WHO’S BUYING TRANSPORTATION 27
Table 9. Transportation: Indexed spending by income, 2006 (indexed average annual spending of consumer units (CU) on transportation, by before-tax income of consumer unit, 2006; index definition: an index of 100 is the average for all consumer units; an index of 132 means that spending by consumer units in that group is 32 percent above the average for all consumer units; an index of 68 indicates spending that is 32 percent below the average for all consumer units)
Average spending of CU, total Average spending of CU, index
total consumer units $48,398 100
under $20,000 $20,825 43
$20,000– $39,999 $31,972 66
$40,000– $49,999 $39,573 82
$50,000– $69,999 $50,086 103
$70,000– $79,999 $57,352 118
$80,000– $99,999 $65,810 136
$100,000 or more $100,386 207
100 100 100 100 100 100 100 100 100 100 100
36 28 23 37 12 35 45 27 20 10 55
69 67 47 41 52 93 92 94 25 16 66
80 65 52 64 40 80 75 84 94 54 190
111 105 98 89 106 114 99 127 102 91 129
128 126 126 104 147 129 153 108 47 25 99
143 151 155 141 169 141 134 147 286 271 325
201 225 276 280 272 166 167 165 252 340 40
TRANSPORTATION Vehicle purchases Cars and trucks, new New cars New trucks Cars and trucks, used Used cars Used trucks Other vehicles New motorcycles Used motorcycles Gasoline and motor oil
100
46
78
96
117
131
141
160
Other vehicle expenses Vehicle finance charges Automobile finance charges Truck finance charges Motorcycle and plane finance charges Other vehicle finance charges Maintenance and repairs Coolant, additives, brake, transmission fluids Tires—purchased, replaced, installed Parts, equipment, and accessories Vehicle products and cleaning services Vehicle video equipment Miscellaneous auto repair, servicing Body work and painting Clutch, transmission repair Drive shaft and rear-end repair Brake work Repair to steering or front-end Repair to engine cooling system Motor tune-up Lube, oil change, and oil filters Front-end alignment, wheel balance, rotation Shock absorber replacement Tire repair and other repair work Vehicle air conditioning repair Exhaust system repair Electrical system repair Motor repair, replacement Auto repair service policy Vehicle insurance Vehicle rental, leases, licenses, other charges Leased and rented vehicles Rented vehicles Leased vehicles Car lease payments Truck lease payments Vehicle registration, state Vehicle registration, local Driver’s license Vehicle inspection
100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
38 22 25 21 5 17 44 63 39 38 42 15 29 44 20 66 38 42 54 40 47 49 32 43 62 70 59 63 22 42 33 28 24 29 32 22 40 46 67 53
68 63 73 58 40 34 71 96 62 72 158 6 64 53 65 81 64 67 89 74 74 94 73 70 76 80 89 74 113 78 51 41 56 39 36 43 70 61 93 80
93 100 110 92 65 118 89 143 87 83 69 16 104 83 95 88 119 82 95 76 96 75 71 61 84 80 72 89 111 103 76 71 65 72 91 52 93 79 95 115
116 126 122 132 161 81 115 128 120 146 106 49 104 114 123 121 101 141 112 89 113 96 84 114 85 114 111 127 153 118 108 110 90 113 98 138 117 100 118 133
132 158 153 161 267 142 125 110 130 162 103 – 85 72 178 16 89 162 86 88 133 93 58 96 162 115 121 134 90 131 129 130 110 133 103 133 136 203 108 126
137 167 150 181 188 142 130 93 157 114 120 159 146 130 130 188 142 132 101 110 144 128 104 144 111 94 140 97 138 133 137 141 136 142 137 159 142 157 121 129
188 180 170 178 177 280 187 105 187 163 97 479 210 238 197 145 207 162 176 245 165 186 279 211 182 167 150 159 116 164 239 260 276 258 272 240 180 175 129 128
28 WHO’S BUYING TRANSPORTATION
total consumer units Parking fees Parking fees in home city, excluding residence Parking fees on trips Tolls Tolls on trips Towing charges Global positioning services Automobile service clubs Public transportation Airline fares Intercity bus fares Intracity mass transit fares Taxis and local transportation on trips Taxi fares and limousine service in home town Intercity train fares Ship fares School bus
under $20,000
$20,000– $39,999
$40,000– $49,999
$50,000– $69,999
$70,000– $79,999
$80,000– $99,999
$100,000 or more
100 100 100 100 100 100 100 100
40 45 15 18 30 68 13 38
42 41 45 81 64 90 46 75
63 58 85 42 95 118 96 98
86 89 72 68 92 90 54 106
82 79 92 167 123 173 188 107
107 97 155 122 144 87 124 129
306 305 306 254 229 137 304 199
100 100 100 100 100 100 100 100 100
37 30 56 85 43 57 35 25 24
47 41 69 85 53 75 62 22 109
54 51 54 80 51 102 59 42 15
99 97 115 89 82 64 65 144 18
114 127 90 81 95 134 108 61 503
135 141 146 65 136 91 119 187 33
268 282 198 190 275 210 289 277 227
Note: “–” means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey
WHO’S BUYING TRANSPORTATION 29
Table 10. Transportation: Total spending by income, 2006 (total annual spending on transportation, by before-tax income group of consumer units (CU), 2006; consumer units and dollars in thousands) total consumer units 118,843 $5,751,801,544
under $20,000 26,075 $543,008,700
$20,000– $39,999 27,536 $880,391,370
$40,000– $49,999 11,446 $452,950,956
$50,000– $69,999 17,674 $885,216,959
$70,000– $79,999 6,956 $398,937,312
1,011,104,360 406,541,700 213,693,975 102,547,248 111,145,539 186,387,419 89,481,648 96,905,771 6,460,305 4,575,456 1,884,850
80,238,399 25,273,521 10,686,257 8,377,317 3,036,393 14,423,780 8,764,640 5,659,139 279,421 100,650 229,380
162,183,202 63,562,703 23,064,492 9,737,238 13,327,121 40,129,932 18,976,750 21,153,173 368,279 167,144 287,524
78,333,791 25,518,399 10,614,219 6,338,680 4,275,539 14,321,235 6,455,773 7,865,462 582,945 237,848 345,097
166,536,800 63,567,722 31,117,375 13,628,775 17,488,423 31,468,380 13,126,480 18,341,900 982,144 620,004 362,140
75,964,876 30,063,971 15,760,557 6,223,603 9,536,954 14,126,175 8,019,155 6,107,020 177,239 67,821 109,418
125,004,923 52,792,969 28,608,336 12,467,496 16,140,840 22,590,212 10,304,597 12,285,616 1,594,421 1,066,805 527,616
322,664,365 145,758,990 93,840,909 45,773,733 48,066,987 49,325,970 23,833,278 25,492,691 2,592,301 2,473,515 118,975
Gasoline and motor oil
264,718,029
26,612,676
47,731,188
24,570,213
45,935,963
20,237,299
32,139,125
67,490,422
Other vehicle expenses Vehicle finance charges Automobile finance charges Truck finance charges Motorcycle and plane finance charges Other vehicle finance charges Maintenance and repairs Coolant, additives, brake and transmission fluids Tires—purchased, replaced, installed Parts, equipment, and accessories Vehicle products and cleaning services Vehicle video equipment Miscellaneous auto repair, servicing Body work and painting Clutch, transmission repair Drive shaft and rear-end repair Brake work Repair to steering or front-end Repair to engine cooling system Motor tune-up Lube, oil change, and oil filters Front-end alignment, wheel balance, rotation Shock absorber replacement Tire repair and other repair work Vehicle air conditioning repair Exhaust system repair Electrical system repair Motor repair, replacement Auto repair service policy Vehicle insurance Vehicle rental, leases, licenses, other charges Leased and rented vehicles Rented vehicles Leased vehicles Car lease payments Truck lease payments Vehicle registration, state Vehicle registration, local Driver’s license Vehicle inspection
279,872,888 35,392,634 13,893,935 19,166,999 494,387 1,837,313 81,816,275
23,445,757 1,709,601 758,976 879,990 5,784 68,205 7,838,865
44,409,164 5,133,753 2,365,101 2,579,718 45,394 143,682 13,371,657
25,097,759 3,412,282 1,467,148 1,704,538 31,133 209,462 7,039,176
48,207,072 6,614,318 2,516,601 3,758,906 118,416 220,572 13,938,423
21,670,722 3,282,884 1,241,785 1,810,995 77,212 152,893 5,991,133
33,072,490 5,089,265 1,795,759 2,988,938 80,289 224,175 9,187,099
83,823,903 10,149,789 3,748,386 5,443,548 139,214 818,830 24,344,740
434,965 12,280,047 4,902,274 629,868 306,615 4,890,389 3,509,434 4,388,872 799,813 7,281,511 2,345,961 2,622,865 5,648,608 7,947,031
59,734 1,049,351 410,766 58,018 9,909 307,483 340,624 193,964 116,235 606,885 214,249 312,550 494,067 817,658
96,574 1,772,308 815,041 231,149 4,130 729,460 427,127 660,414 150,897 1,079,651 361,906 538,967 968,708 1,364,137
59,863 1,024,646 390,766 42,121 4,807 489,545 279,053 402,212 67,531 832,239 184,738 239,450 411,484 733,918
82,538 2,195,111 1,062,738 99,505 22,446 758,215 596,498 802,046 143,690 1,092,076 493,458 437,432 744,959 1,337,568
28,102 931,200 465,774 38,049 – 244,086 147,467 457,635 7,304 381,397 222,105 131,260 290,343 616,371
34,717 1,656,482 482,966 65,133 41,988 613,231 392,025 493,411 129,446 892,913 266,061 228,272 534,887 986,311
73,012 3,650,784 1,274,493 97,223 233,979 1,633,878 1,327,076 1,379,093 184,800 2,395,774 603,578 734,659 2,204,543 2,091,621
1,638,845 568,070 5,766,262 1,418,985 1,206,256 2,934,234 8,234,631 1,038,688 105,346,000
174,818 40,480 547,882 192,987 184,147 377,012 1,133,859 50,069 9,754,558
355,858 96,138 929,162 249,498 224,873 604,914 1,415,834 271,125 19,128,679
118,581 38,573 338,229 114,918 93,514 203,395 703,242 110,568 10,427,306
234,004 70,873 975,428 180,098 204,311 486,212 1,556,372 235,948 18,430,624
89,593 19,199 324,984 134,599 81,385 207,358 647,186 54,674 8,062,491
180,856 50,898 717,587 135,898 97,597 353,315 690,653 123,814 12,041,880
484,981 252,326 1,932,924 411,401 320,798 702,314 2,087,459 192,555 27,500,329
57,317,979 34,982,625 4,455,424 30,527,201 14,631,950 12,974,090 10,256,151 992,339 816,451 1,130,197
4,142,871 2,169,583 234,888 1,934,619 1,040,737 632,394 900,572 99,101 119,453 132,302
6,774,933 3,301,879 573,975 2,727,904 1,236,769 1,281,781 1,654,763 139,765 175,021 210,669
4,218,996 2,388,666 280,541 2,108,124 1,282,524 653,452 918,198 75,773 74,971 124,647
9,223,707 5,745,464 596,674 5,148,790 2,130,070 2,669,658 1,784,721 148,285 143,159 223,046
4,334,214 2,655,592 286,518 2,369,144 882,647 1,009,385 815,452 117,835 51,683 83,194
6,754,349 4,247,455 523,418 3,724,037 1,726,735 1,774,253 1,250,836 134,669 85,205 125,759
21,829,045 14,473,758 1,959,594 12,514,164 6,332,364 4,952,514 2,931,447 276,348 167,398 230,006
Number of consumer units Total spending of all CUs TRANSPORTATION Vehicle purchases Cars and trucks, new New cars New trucks Cars and trucks, used Used cars Used trucks Other vehicles New motorcycles Used motorcycles
30 WHO’S BUYING TRANSPORTATION
$80,000– $100,000 $99,999 or more 10,241 18,915 $673,958,776 $1,898,807,054
Parking fees Parking fees in home city, excluding residence Parking fees on trips Tolls Tolls on trips Towing charges Global positioning services Automobile service clubs Public transportation Airline fares Intercity bus fares Intracity mass transit fares Taxis and local transportation on trips Taxi fares and limousine service in home town Intercity train fares Ship fares School bus
total consumer units
under $20,000
$20,000– $39,999
$40,000– $49,999
$50,000– $69,999
$70,000– $79,999
$80,000– $99,999
$100,000 or more
$4,145,244
$362,881
$403,378
$251,698
$530,043
$198,037
$382,399
$2,016,906
3,416,736 729,696 1,785,022 477,749 607,288 190,149 1,935,952
339,148 23,734 71,481 31,030 90,693 5,370 162,692
327,462 75,774 336,774 70,415 126,223 20,401 335,655
192,293 59,405 71,538 43,609 69,019 17,627 183,136
452,278 77,942 181,159 65,394 81,477 15,376 305,407
158,736 39,301 174,109 34,432 61,561 20,938 121,382
285,212 97,187 186,898 59,398 45,777 20,277 215,471
1,661,115 355,791 722,931 173,829 132,594 91,927 612,089
59,971,743 39,764,868 1,346,491 6,071,689 2,476,688
4,906,400 2,645,622 166,384 1,138,983 236,192
6,480,423 3,815,045 214,045 1,192,887 305,384
3,147,307 1,944,446 69,935 470,660 120,870
8,825,689 5,737,687 231,176 806,465 302,049
3,992,883 2,953,726 70,812 288,187 137,729
7,000,338 4,816,752 168,977 338,363 290,025
25,591,049 17,851,599 425,020 1,835,512 1,084,208
1,648,352 1,935,952 6,538,742 188,960
205,508 150,620 358,392 10,109
286,309 279,074 340,131 47,557
162,304 109,767 266,463 2,747
156,945 187,168 1,399,427 4,949
129,729 121,939 235,182 55,578
129,958 198,471 1,052,468 5,325
550,237 889,383 2,886,618 68,283
Note: Numbers may not add to total because some categories are not shown and because of rounding. “–” means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey
WHO’S BUYING TRANSPORTATION 31
Table 11. Transportation: Market shares by income, 2006 (percentage of total annual spending on transportation accounted for by before-tax income group of consumer units, 2006) under $20,000 21.9% 3.9 9.4
$20,000– $39,999 23.2% 11.3 15.3
$40,000– $49,999 9.6% 7.1 7.9
$50,000– $69,999 14.9% 14.6 15.4
$70,000– $79,999 5.9% 7.2 6.9
$80,000– $99,999 8.6% 12.6 11.7
$100,000 or more 15.9% 43.2 33.0
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
7.9 6.2 5.0 8.2 2.7 7.7 9.8 5.8 4.3 2.2 12.2
16.0 15.6 10.8 9.5 12.0 21.5 21.2 21.8 5.7 3.7 15.3
7.7 6.3 5.0 6.2 3.8 7.7 7.2 8.1 9.0 5.2 18.3
16.5 15.6 14.6 13.3 15.7 16.9 14.7 18.9 15.2 13.6 19.2
7.5 7.4 7.4 6.1 8.6 7.6 9.0 6.3 2.7 1.5 5.8
12.4 13.0 13.4 12.2 14.5 12.1 11.5 12.7 24.7 23.3 28.0
31.9 35.9 43.9 44.6 43.2 26.5 26.6 26.3 40.1 54.1 6.3
Gasoline and motor oil
100.0
10.1
18.0
9.3
17.4
7.6
12.1
25.5
Other vehicle expenses Vehicle finance charges Automobile finance charges Truck finance charges Motorcycle and plane finance charges Other vehicle finance charges Maintenance and repairs Coolant, additives, brake and transmission fluids Tires—purchased, replaced, installed Parts, equipment, and accessories Vehicle products and cleaning services Vehicle video equipment Miscellaneous auto repair, servicing Body work and painting Clutch, transmission repair Drive shaft and rear-end repair Brake work Repair to steering or front-end Repair to engine cooling system Motor tune-up Lube, oil change, and oil filters Front-end alignment, wheel balance, rotation Shock absorber replacement Tire repair and other repair work Vehicle air conditioning repair Exhaust system repair Electrical system repair Motor repair, replacement Auto repair service policy Vehicle insurance Vehicle rental, leases, licenses, other charges Leased and rented vehicles Rented vehicles Leased vehicles Car lease payments Truck lease payments Vehicle registration, state Vehicle registration, local Driver’s license Vehicle inspection
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
8.4 4.8 5.5 4.6 1.2 3.7 9.6 13.7 8.5 8.4 9.2 3.2 6.3 9.7 4.4 14.5 8.3 9.1 11.9 8.7 10.3 10.7 7.1 9.5 13.6 15.3 12.8 13.8 4.8 9.3 7.2 6.2 5.3 6.3 7.1 4.9 8.8 10.0 14.6 11.7
15.9 14.5 17.0 13.5 9.2 7.8 16.3 22.2 14.4 16.6 36.7 1.3 14.9 12.2 15.0 18.9 14.8 15.4 20.5 17.1 17.2 21.7 16.9 16.1 17.6 18.6 20.6 17.2 26.1 18.2 11.8 9.4 12.9 8.9 8.5 9.9 16.1 14.1 21.4 18.6
9.0 9.6 10.6 8.9 6.3 11.4 8.6 13.8 8.3 8.0 6.7 1.6 10.0 8.0 9.2 8.4 11.4 7.9 9.1 7.3 9.2 7.2 6.8 5.9 8.1 7.8 6.9 8.5 10.6 9.9 7.4 6.8 6.3 6.9 8.8 5.0 9.0 7.6 9.2 11.0
17.2 18.7 18.1 19.6 24.0 12.0 17.0 19.0 17.9 21.7 15.8 7.3 15.5 17.0 18.3 18.0 15.0 21.0 16.7 13.2 16.8 14.3 12.5 16.9 12.7 16.9 16.6 18.9 22.7 17.5 16.1 16.4 13.4 16.9 14.6 20.6 17.4 14.9 17.5 19.7
7.7 9.3 8.9 9.4 15.6 8.3 7.3 6.5 7.6 9.5 6.0 – 5.0 4.2 10.4 0.9 5.2 9.5 5.0 5.1 7.8 5.5 3.4 5.6 9.5 6.7 7.1 7.9 5.3 7.7 7.6 7.6 6.4 7.8 6.0 7.8 8.0 11.9 6.3 7.4
11.8 14.4 12.9 15.6 16.2 12.2 11.2 8.0 13.5 9.9 10.3 13.7 12.5 11.2 11.2 16.2 12.3 11.3 8.7 9.5 12.4 11.0 9.0 12.4 9.6 8.1 12.0 8.4 11.9 11.4 11.8 12.1 11.7 12.2 11.8 13.7 12.2 13.6 10.4 11.1
30.0 28.7 27.0 28.4 28.2 44.6 29.8 16.8 29.7 26.0 15.4 76.3 33.4 37.8 31.4 23.1 32.9 25.7 28.0 39.0 26.3 29.6 44.4 33.5 29.0 26.6 23.9 25.3 18.5 26.1 38.1 41.4 44.0 41.0 43.3 38.2 28.6 27.8 20.5 20.4
Share of total consumer units Share of total before-tax income Share of total spending
total consumer units 100.0% 100.0 100.0
TRANSPORTATION Vehicle purchases Cars and trucks, new New cars New trucks Cars and trucks, used Used cars Used trucks Other vehicles New motorcycles Used motorcycles
32 WHO’S BUYING TRANSPORTATION
total consumer units Parking fees Parking fees in home city, excl. residence Parking fees on trips Tolls Tolls on trips Towing charges Global positioning services Automobile service clubs Public transportation Airline fares Intercity bus fares Intracity mass transit fares Taxis and local transportation on trips Taxi fares and limousine service in home town Intercity train fares Ship fares School bus
under $20,000
$20,000– $39,999
100.0% 100.0 100.0 100.0 100.0 100.0 100.0 100.0
8.8% 9.9 3.3 4.0 6.5 14.9 2.8 8.4
9.7% 9.6 10.4 18.9 14.7 20.8 10.7 17.3
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
8.2 6.7 12.4 18.8 9.5 12.5 7.8 5.5 5.3
10.8 9.6 15.9 19.6 12.3 17.4 14.4 5.2 25.2
$40,000– $49,999 6.1% 5.6 8.1 4.0 9.1 11.4 9.3 9.5 5.2 4.9 5.2 7.8 4.9 9.8 5.7 4.1 1.5
$50,000– $69,999
$70,000– $79,999
$80,000– $99,999
$100,000 or more
12.8% 13.2 10.7 10.1 13.7 13.4 8.1 15.8
4.8% 4.6 5.4 9.8 7.2 10.1 11.0 6.3
9.2% 8.3 13.3 10.5 12.4 7.5 10.7 11.1
48.7% 48.6 48.8 40.5 36.4 21.8 48.3 31.6
14.7 14.4 17.2 13.3 12.2 9.5 9.7 21.4 2.6
6.7 7.4 5.3 4.7 5.6 7.9 6.3 3.6 29.4
11.7 12.1 12.5 5.6 11.7 7.9 10.3 16.1 2.8
42.7 44.9 31.6 30.2 43.8 33.4 45.9 44.1 36.1
Note: Numbers may not add to total because of rounding. “–” means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey
WHO’S BUYING TRANSPORTATION 33
Table 12. Transportation: Average spending by high-income consumer units, 2006 (average annual spending on transportation, by before-tax income of consumer units with high incomes, 2006) total consumer units 118,843 2.5 $60,533.00 48,398.32
$100,000 or more 18,915 3.2 $164,452.00 100,386.31
$100,000– $119,999 6,300 3.2 $108,417.00 78,128.93
$120,000– $149,999 5,357 3.1 $132,682.00 88,646.65
$150,000 or more 7,258 3.2 $236,545.00 128,681.21
TRANSPORTATION Vehicle purchases Cars and trucks, new New cars New trucks Cars and trucks, used Used cars Used trucks Other vehicles New motorcycles Used motorcycles
8,507.90 3,420.83 1,798.12 862.88 935.23 1,568.35 752.94 815.41 54.36 38.50 15.86
17,058.65 7,706.00 4,961.19 2,419.97 2,541.21 2,607.77 1,260.02 1,347.75 137.05 130.77 6.29
13,600.60 5,502.16 3,091.96 1,559.85 1,532.11 2,276.45 1,032.37 1,244.08 133.75 118.01 15.74
15,661.40 6,805.21 4,005.75 1,411.68 2,594.07 2,662.63 1,400.19 1,262.44 136.83 133.15 3.69
21,096.89 10,283.99 7,289.02 3,910.82 3,378.20 2,854.88 1,354.18 1,500.71 140.08 140.08 –
Gasoline and motor oil
2,227.46
3,568.09
3,317.88
3,598.03
3,763.19
Other vehicle expenses Vehicle finance charges Automobile finance charges Truck finance charges Motorcycle and plane finance charges Other vehicle finance charges Maintenance and repairs Coolant, additives, brake and transmission fluids Tires—purchased, replaced, installed Parts, equipment, and accessories Vehicle products and cleaning services Vehicle video equipment Miscellaneous auto repair, servicing Body work and painting Clutch, transmission repair Drive shaft and rear-end repair Brake work Repair to steering or front-end Repair to engine cooling system Motor tune-up Lube, oil change, and oil filters Front-end alignment, wheel balance, rotation Shock absorber replacement Tire repair and other repair work Vehicle air conditioning repair Exhaust system repair Electrical system repair Motor repair, replacement Auto repair service policy Vehicle insurance Vehicle rental, leases, licenses, other charges Leased and rented vehicles Rented vehicles Leased vehicles Car lease payments Truck lease payments Vehicle registration, state Vehicle registration, local Driver’s license Vehicle inspection
2,354.98 297.81 116.91 161.28 4.16 15.46 688.44 3.66 103.33 41.25 5.30 2.58 41.15 29.53 36.93 6.73 61.27 19.74 22.07 47.53 66.87 13.79 4.78 48.52 11.94 10.15 24.69 69.29 8.74 886.43 482.30 294.36 37.49 256.87 123.12 109.17 86.30 8.35 6.87 9.51
4,431.61 536.60 198.17 287.79 7.36 43.29 1,287.06 3.86 193.01 67.38 5.14 12.37 86.38 70.16 72.91 9.77 126.66 31.91 38.84 116.55 110.58 25.64 13.34 102.19 21.75 16.96 37.13 110.36 10.18 1,453.89 1,154.06 765.20 103.60 661.60 334.78 261.83 154.98 14.61 8.85 12.16
3,731.73 526.20 188.51 306.81 4.94 25.94 1,050.58 3.95 161.47 73.92 4.25 0.32 81.47 36.90 67.10 8.63 94.20 20.69 28.11 85.51 97.03 19.31 6.67 97.40 17.15 11.20 38.15 85.10 12.06 1,307.19 847.76 552.21 71.58 480.63 227.36 211.68 133.19 16.36 8.77 12.17
4,205.89 531.21 196.07 291.35 10.84 32.95 1,285.14 4.76 180.15 76.26 4.58 6.63 72.12 83.85 71.05 11.29 138.91 31.97 43.34 110.75 107.70 34.76 13.23 92.94 34.01 12.79 27.81 113.88 10.02 1,481.64 907.90 572.67 75.41 497.26 237.48 193.73 144.35 12.47 8.08 11.99
5,208.90 549.61 208.10 268.64 6.88 65.99 1,495.45 3.13 229.88 55.16 6.44 27.06 102.20 88.94 79.34 9.62 145.80 41.61 44.84 147.78 124.46 24.41 19.20 113.17 16.68 25.05 43.12 129.70 8.67 1,560.75 1,603.08 1,092.18 152.20 939.98 499.86 355.62 181.73 14.68 9.48 12.29
Number of consumer units (in 000s) Number of persons per consumer unit Average before-tax income of consumer units Average spending of consumer units, total
34 WHO’S BUYING TRANSPORTATION
Parking fees Parking fees in home city, excluding residence Parking fees on trips Tolls Tolls on trips Towing charges Global positioning services Automobile service clubs Public transportation Airline fares Intercity bus fares Intracity mass transit fares Taxis and local transportation on trips Taxi fares and limousine service in home town Intercity train fares Ship fares School bus
total consumer units
$100,000 or more
$100,000– $119,999
$120,000– $149,999
$150,000 or more
$34.88 28.75 6.14 15.02 4.02 5.11 1.60 16.29
$106.63 87.82 18.81 38.22 9.19 7.01 4.86 32.36
$59.54 48.55 10.99 26.86 6.71 5.91 4.11 21.92
$69.99 53.56 16.43 37.48 9.95 7.36 3.65 29.90
$174.56 147.20 27.36 50.06 10.78 7.70 6.39 43.24
504.63 334.60 11.33 51.09 20.84 13.87 16.29 55.02 1.59
1,352.95 943.78 22.47 97.04 57.32 29.09 47.02 152.61 3.61
1,048.83 736.03 19.16 73.08 39.43 12.26 42.86 121.90 4.11
1,052.27 736.08 14.62 79.63 34.32 34.17 35.16 116.39 1.91
1,840.81 1,277.42 31.14 130.69 89.82 41.89 59.40 206.02 4.43
Note: Numbers may not add to total because some categories are not shown. Source: Bureau of Labor Statistics, unpublished tables from the 2006 Consumer Expenditure Survey
WHO’S BUYING TRANSPORTATION 35
Table 13. Transportation: Indexed spending by high-income consumer units, 2006 (indexed average annual spending of consumer units with high incomes on transportation, by before-tax income of consumer unit, 2006; index definition: an index of 100 is the average for all consumer units; an index of 132 means that spending by consumer units in that group is 32 percent above the average for all consumer units; an index of 68 indicates spending that is 32 percent below the average for all consumer units) total consumer units $48,398 100
$100,000 or more $100,386 207
$100,000– $119,999 $78,129 161
$120,000– $149,999 $88,647 183
$150,000 or more $128,681 266
TRANSPORTATION Vehicle purchases Cars and trucks, new New cars New trucks Cars and trucks, used Used cars Used trucks Other vehicles New motorcycles Used motorcycles
100 100 100 100 100 100 100 100 100 100 100
201 225 276 280 272 166 167 165 252 340 40
160 161 172 181 164 145 137 153 246 307 99
184 199 223 164 277 170 186 155 252 346 23
248 301 405 453 361 182 180 184 258 364 –
Gasoline and motor oil
100
160
149
162
169
Other vehicle expenses Vehicle finance charges Automobile finance charges Truck finance charges Motorcycle and plane finance charges Other vehicle finance charges Maintenance and repairs Coolant, additives, brake and transmission fluids Tires—purchased, replaced, installed Parts, equipment, and accessories Vehicle products and cleaning services Vehicle video equipment Miscellaneous auto repair, servicing Body work and painting Clutch, transmission repair Drive shaft and rear-end repair Brake work Repair to steering or front-end Repair to engine cooling system Motor tune-up Lube, oil change, and oil filters Front-end alignment, wheel balance, rotation Shock absorber replacement Tire repair and other repair work Vehicle air conditioning repair Exhaust system repair Electrical system repair Motor repair, replacement Auto repair service policy Vehicle insurance Vehicle rental, leases, licenses, other charges Leased and rented vehicles Rented vehicles Leased vehicles Car lease payments Truck lease payments Vehicle registration, state Vehicle registration, local Driver’s license Vehicle inspection
100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
188 180 170 178 177 280 187 105 187 163 97 479 210 238 197 145 207 162 176 245 165 186 279 211 182 167 150 159 116 164 239 260 276 258 272 240 180 175 129 128
158 177 161 190 119 168 153 108 156 179 80 12 198 125 182 128 154 105 127 180 145 140 140 201 144 110 155 123 138 147 176 188 191 187 185 194 154 196 128 128
179 178 168 181 261 213 187 130 174 185 86 257 175 284 192 168 227 162 196 233 161 252 277 192 285 126 113 164 115 167 188 195 201 194 193 177 167 149 118 126
221 185 178 167 165 427 217 86 222 134 122 1049 248 301 215 143 238 211 203 311 186 177 402 233 140 247 175 187 99 176 332 371 406 366 406 326 211 176 138 129
Average spending of consumer units, total Average spending of consumer units, index
36 WHO’S BUYING TRANSPORTATION
Parking fees Parking fees in home city, excluding residence Parking fees on trips Tolls Tolls on trips Towing charges Global positioning services Automobile service clubs Public transportation Airline fares Intercity bus fares Intracity mass transit fares Taxis and local transportation on trips Taxi fares and limousine service in home town Intercity train fares Ship fares School bus
total consumer units
$100,000 or more
$100,000– $119,999
$120,000– $149,999
$150,000 or more
100 100 100 100 100 100 100 100
306 305 306 254 229 137 304 199
171 169 179 179 167 116 257 135
201 186 268 250 248 144 228 184
500 512 446 333 268 151 399 265
100 100 100 100 100 100 100 100 100
268 282 198 190 275 210 289 277 227
208 220 169 143 189 88 263 222 258
209 220 129 156 165 246 216 212 120
365 382 275 256 431 302 365 374 279
Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey
WHO’S BUYING TRANSPORTATION 37
Table 14. Transportation: Total spending by high-income consumer units, 2006 (total annual spending on transportation, by before-tax income group of consumer units with high incomes, 2006; consumer units and dollars in thousands) total consumer units 118,843 $5,751,801,544
$100,000 or more 18,915 $1,898,807,054
$100,000– $119,999 6,300 $492,212,259
$120,000– $149,999 5,357 $474,880,104
$150,000 or more 7,258 $933,968,222
1,011,104,360 406,541,700 213,693,975 102,547,248 111,145,539 186,387,419 89,481,648 96,905,771 6,460,305 4,575,456 1,884,850
322,664,365 145,758,990 93,840,909 45,773,733 48,066,987 49,325,970 23,833,278 25,492,691 2,592,301 2,473,515 118,975
85,683,780 34,663,608 19,479,348 9,827,055 9,652,293 14,341,635 6,503,931 7,837,704 842,625 743,463 99,162
83,898,120 36,455,510 21,458,803 7,562,370 13,896,433 14,263,709 7,500,818 6,762,891 732,998 713,285 19,767
153,121,228 74,641,199 52,903,707 28,384,732 24,518,976 20,720,719 9,828,638 10,892,153 1,016,701 1,016,701 –
Gasoline and motor oil
264,718,029
67,490,422
20,902,644
19,274,647
27,313,233
Other vehicle expenses Vehicle finance charges Automobile finance charges Truck finance charges Motorcycle and plane finance charges Other vehicle finance charges Maintenance and repairs Coolant, additives, brake and transmission fluids Tires—purchased, replaced, installed Parts, equipment, and accessories Vehicle products and cleaning services Vehicle video equipment Miscellaneous auto repair, servicing Body work and painting Clutch, transmission repair Drive shaft and rear-end repair Brake work Repair to steering or front-end Repair to engine cooling system Motor tune-up Lube, oil change, and oil filters Front-end alignment, wheel balance, rotation Shock absorber replacement Tire repair and other repair work Vehicle air conditioning repair Exhaust system repair Electrical system repair Motor repair, replacement Auto repair service policy Vehicle insurance Vehicle rental, leases, licenses, other charges Leased and rented vehicles Rented vehicles Leased vehicles Car lease payments Truck lease payments Vehicle registration, state Vehicle registration, local Driver’s license Vehicle inspection
279,872,888 35,392,634 13,893,935 19,166,999 494,387 1,837,313 81,816,275 434,965 12,280,047 4,902,274 629,868 306,615 4,890,389 3,509,434 4,388,872 799,813 7,281,511 2,345,961 2,622,865 5,648,608 7,947,031 1,638,845 568,070 5,766,262 1,418,985 1,206,256 2,934,234 8,234,631 1,038,688 105,346,000 57,317,979 34,982,625 4,455,424 30,527,201 14,631,950 12,974,090 10,256,151 992,339 816,451 1,130,197
83,823,903 10,149,789 3,748,386 5,443,548 139,214 818,830 24,344,740 73,012 3,650,784 1,274,493 97,223 233,979 1,633,878 1,327,076 1,379,093 184,800 2,395,774 603,578 734,659 2,204,543 2,091,621 484,981 252,326 1,932,924 411,401 320,798 702,314 2,087,459 192,555 27,500,329 21,829,045 14,473,758 1,959,594 12,514,164 6,332,364 4,952,514 2,931,447 276,348 167,398 230,006
23,509,899 3,315,060 1,187,613 1,932,903 31,122 163,422 6,618,654 24,885 1,017,261 465,696 26,775 2,016 513,261 232,470 422,730 54,369 593,460 130,347 177,093 538,713 611,289 121,653 42,021 613,620 108,045 70,560 240,345 536,130 75,978 8,235,297 5,340,888 3,478,923 450,954 3,027,969 1,432,368 1,333,584 839,097 103,068 55,251 76,671
22,530,953 2,845,692 1,050,347 1,560,762 58,070 176,513 6,884,495 25,499 965,064 408,525 24,535 35,517 386,347 449,184 380,615 60,481 744,141 171,263 232,172 593,288 576,949 186,209 70,873 497,880 182,192 68,516 148,978 610,055 53,677 7,937,145 4,863,620 3,067,793 403,971 2,663,822 1,272,180 1,037,812 773,283 66,802 43,285 64,230
37,806,196 3,989,069 1,510,390 1,949,789 49,935 478,955 10,853,976 22,718 1,668,469 400,351 46,742 196,401 741,768 645,527 575,850 69,822 1,058,216 302,005 325,449 1,072,587 903,331 177,168 139,354 821,388 121,063 181,813 312,965 941,363 62,927 11,327,924 11,635,155 7,927,042 1,104,668 6,822,375 3,627,984 2,581,090 1,318,996 106,547 68,806 89,201
Number of consumer units Total spending of all consumer units TRANSPORTATION Vehicle purchases Cars and trucks, new New cars New trucks Cars and trucks, used Used cars Used trucks Other vehicles New motorcycles Used motorcycles
38 WHO’S BUYING TRANSPORTATION
Parking fees Parking fees in home city, excluding residence Parking fees on trips Tolls Tolls on trips Towing charges Global positioning services Automobile service clubs Public transportation Airline fares Intercity bus fares Intracity mass transit fares Taxis and local transportation on trips Taxi fares and limousine service in home town Intercity train fares Ship fares School bus
total consumer units
$100,000 or more
$100,000– $119,999
$120,000– $149,999
$150,000 or more
$4,145,244 3,416,736 729,696 1,785,022 477,749 607,288 190,149 1,935,952
$2,016,906 1,661,115 355,791 722,931 173,829 132,594 91,927 612,089
$375,102 305,865 69,237 169,218 42,273 37,233 25,893 138,096
$374,936 286,921 88,016 200,780 53,302 39,428 19,553 160,174
$1,266,956 1,068,378 198,579 363,335 78,241 55,887 46,379 313,836
59,971,743 39,764,868 1,346,491 6,071,689 2,476,688 1,648,352 1,935,952 6,538,742 188,960
25,591,049 17,851,599 425,020 1,835,512 1,084,208 550,237 889,383 2,886,618 68,283
6,607,629 4,636,989 120,708 460,404 248,409 77,238 270,018 767,970 25,893
5,637,010 3,943,181 78,319 426,578 183,852 183,049 188,352 623,501 10,232
13,360,599 9,271,514 226,014 948,548 651,914 304,038 431,125 1,495,293 32,153
Note: Numbers may not add to total because some categories are not shown and because of rounding. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey
WHO’S BUYING TRANSPORTATION 39
Table 15. Transportation: Market shares by high-income consumer units, 2006 (percentage of total annual spending on transportation accounted for by before-tax income group of consumer units with high incomes, 2006)
Share of total consumer units Share of total before-tax income Share of total spending
total consumer units 100.0% 100.0 100.0
$100,000 or more 15.9% 43.2 33.0
$100,000– $119,999 5.3% 9.5 8.6
$120,000– $149,999 4.5% 9.9 8.3
$150,000 or more 6.1% 23.9 16.2
TRANSPORTATION Vehicle purchases Cars and trucks, new New cars New trucks Cars and trucks, used Used cars Used trucks Other vehicles New motorcycles Used motorcycles
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
31.9 35.9 43.9 44.6 43.2 26.5 26.6 26.3 40.1 54.1 6.3
8.5 8.5 9.1 9.6 8.7 7.7 7.3 8.1 13.0 16.2 5.3
8.3 9.0 10.0 7.4 12.5 7.7 8.4 7.0 11.3 15.6 1.0
15.1 18.4 24.8 27.7 22.1 11.1 11.0 11.2 15.7 22.2 –
Gasoline and motor oil
100.0
25.5
7.9
7.3
10.3
Other vehicle expenses Vehicle finance charges Automobile finance charges Truck finance charges Motorcycle and plane finance charges Other vehicle finance charges Maintenance and repairs Coolant, additives, brake and transmission fluids Tires—purchased, replaced, installed Parts, equipment, and accessories Vehicle products and cleaning services Vehicle video equipment Miscellaneous auto repair, servicing Body work and painting Clutch, transmission repair Drive shaft and rear-end repair Brake work Repair to steering or front-end Repair to engine cooling system Motor tune-up Lube, oil change, and oil filters Front-end alignment, wheel balance, rotation Shock absorber replacement Tire repair and other repair work Vehicle air conditioning repair Exhaust system repair Electrical system repair Motor repair, replacement Auto repair service policy Vehicle insurance Vehicle rental, leases, licenses, other charges Leased and rented vehicles Rented vehicles Leased vehicles Car lease payments Truck lease payments Vehicle registration, state Vehicle registration, local Driver’s license Vehicle inspection
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
30.0 28.7 27.0 28.4 28.2 44.6 29.8 16.8 29.7 26.0 15.4 76.3 33.4 37.8 31.4 23.1 32.9 25.7 28.0 39.0 26.3 29.6 44.4 33.5 29.0 26.6 23.9 25.3 18.5 26.1 38.1 41.4 44.0 41.0 43.3 38.2 28.6 27.8 20.5 20.4
8.4 9.4 8.5 10.1 6.3 8.9 8.1 5.7 8.3 9.5 4.3 0.7 10.5 6.6 9.6 6.8 8.2 5.6 6.8 9.5 7.7 7.4 7.4 10.6 7.6 5.8 8.2 6.5 7.3 7.8 9.3 9.9 10.1 9.9 9.8 10.3 8.2 10.4 6.8 6.8
8.1 8.0 7.6 8.1 11.7 9.6 8.4 5.9 7.9 8.3 3.9 11.6 7.9 12.8 8.7 7.6 10.2 7.3 8.9 10.5 7.3 11.4 12.5 8.6 12.8 5.7 5.1 7.4 5.2 7.5 8.5 8.8 9.1 8.7 8.7 8.0 7.5 6.7 5.3 5.7
13.5 11.3 10.9 10.2 10.1 26.1 13.3 5.2 13.6 8.2 7.4 64.1 15.2 18.4 13.1 8.7 14.5 12.9 12.4 19.0 11.4 10.8 24.5 14.2 8.5 15.1 10.7 11.4 6.1 10.8 20.3 22.7 24.8 22.3 24.8 19.9 12.9 10.7 8.4 7.9
40 WHO’S BUYING TRANSPORTATION
total consumer units Parking fees Parking fees in home city, excluding residence Parking fees on trips Tolls Tolls on trips Towing charges Global positioning services Automobile service clubs Public transportation Airline fares Intercity bus fares Intracity mass transit fares Taxis and local transportation on trips Taxi fares and limousine service in home town Intercity train fares Ship fares School bus
$100,000 or more
$100,000– $119,999
$120,000– $149,999
$150,000 or more
100.0% 100.0 100.0 100.0 100.0 100.0 100.0 100.0
48.7% 48.6 48.8 40.5 36.4 21.8 48.3 31.6
9.0% 9.0 9.5 9.5 8.8 6.1 13.6 7.1
9.0% 8.4 12.1 11.2 11.2 6.5 10.3 8.3
30.6% 31.3 27.2 20.4 16.4 9.2 24.4 16.2
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
42.7 44.9 31.6 30.2 43.8 33.4 45.9 44.1 36.1
11.0 11.7 9.0 7.6 10.0 4.7 13.9 11.7 13.7
9.4 9.9 5.8 7.0 7.4 11.1 9.7 9.5 5.4
22.3 23.3 16.8 15.6 26.3 18.4 22.3 22.9 17.0
Note: Numbers may not add to total because of rounding. “–” means sample is too small to make a reliable estimate. Source: Calculations by New Strategist based on the Bureau of Labor Statistics’ 2006 Consumer Expenditure Survey
WHO’S BUYING TRANSPORTATION 41
Table 16. Transportation: Average spending by household type, 2006 (average annual spending of consumer units (CU) on transportation, by type of consumer unit, 2006)
total consumer units 118,843 2.5 $60,533.00 48,398.32
total married couples 59,428 3.2 $82,195.00 62,503.18
married couples, no children 25,306 2.0 $73,032.00 55,631.38
TRANSPORTATION Vehicle purchases Cars and trucks, new New cars New trucks Cars and trucks, used Used cars Used trucks Other vehicles New motorcycles Used motorcycles
8,507.90 3,420.83 1,798.12 862.88 935.23 1,568.35 752.94 815.41 54.36 38.50 15.86
11,387.79 4,744.72 2,664.55 1,201.16 1,463.39 2,001.32 882.60 1,118.72 78.86 62.88 15.98
Gasoline and motor oil
2,227.46
Other vehicle expenses 2,354.98 Vehicle finance charges 297.81 Automobile finance charges 116.91 Truck finance charges 161.28 Motorcycle and plane finance charges 4.16 Other vehicle finance charges 15.46 Maintenance and repairs 688.44 Coolant, additives, brake, transmission fluids 3.66 Tires—purchased, replaced, installed 103.33 Parts, equipment, and accessories 41.25 Vehicle products and cleaning services 5.30 Vehicle video equipment 2.58 Miscellaneous auto repair, servicing 41.15 Body work and painting 29.53 Clutch, transmission repair 36.93 Drive shaft and rear-end repair 6.73 Brake work 61.27 Repair to steering or front-end 19.74 Repair to engine cooling system 22.07 Motor tune-up 47.53 Lube, oil change, and oil filters 66.87 Front-end alignment, wheel balance, rotation 13.79 Shock absorber replacement 4.78 Tire repair and other repair work 48.52 Vehicle air conditioning repair 11.94 Exhaust system repair 10.15 Electrical system repair 24.69 Motor repair, replacement 69.29 Auto repair service policy 8.74 Vehicle insurance 886.43 Vehicle rental, leases, licenses, other charges 482.30 Leased and rented vehicles 294.36 Rented vehicles 37.49 Leased vehicles 256.87 Car lease payments 123.12 Truck lease payments 109.17 Vehicle registration, state 86.30 Vehicle registration, local 8.35 Driver’s license 6.87 Vehicle inspection 9.51
Number of consumer units (in 000s) Number of persons per CU Average before-tax income of CU Average spending of CU, total
42 WHO’S BUYING TRANSPORTATION
married couples with children total 29,381 3.9 $89,351.00 68,354.25
oldest child under 6 5,763 3.5 $81,372.00 63,415.54
oldest child 6 to 17 15,166 4.1 $89,792.00 69,157.47
oldest child 18 or older 8,452 3.9 $93,999.00 70,233.96
single parent, at least one child